Parenting & Family

How to bring up the topic of life insurance

  • Last Updated:
  • Jun 16th, 2018 5:39 pm
[OP]
Deal Expert
Dec 4, 2010
15915 posts
1300 upvotes
TOP SECRET SPAGHETTI…

How to bring up the topic of life insurance

So I have two aging parents who have no insurance. We are from a traditional family and from a culture that doesn't know about life insurance. In fact some years back one of my siblings took out a policy on my father and when they came to discuss it with him he was livid accusing of said sibling of wanting to bring about his early demise for selfish gains.

Now that my father has started exhibiting some signs of health decline in wondering if it's worth it. I think if I talked to him he would be more receptive to the idea. I do feel about of guilt because if I'm honest the whole premise is a bit seedy.

What do you think is the best approach?
7 replies
Deal Addict
Jan 2, 2015
1162 posts
473 upvotes
I am not sure why your parent need life insurance? Usually life insurance is required if there dependants relying on your parents support. As they age life insurance gets much more expensive even more so if they have health concerns.

I am making an assumption that your parents have some assets that would cover cost of the funeral arrangements and there are no dependants, they are retired or something like that.

A more important conversation is not the life insurance, but will, POA and personal directives.
Last edited by Macx2mommy on Jun 11th, 2018 8:47 am, edited 1 time in total.
On a 'smart' device that isn't always so smart. So please forgive the autocorrects and typos. If it brothers you, then don't read my posts, but don't waste my time correcting me. If you can get past the typos, then my posts generally have some value.
Deal Addict
User avatar
Mar 9, 2012
1353 posts
494 upvotes
Kitchener
I am not sure that I would approach it. If his health is declining, then insurance (based on health checks) will be very expensive. If you can find insurance without health checks, and depending on his age, that too will be very expensive. Expensive enough that it might be better off saving money into a TFSA.

How old is your dad? That might help..
[OP]
Deal Expert
Dec 4, 2010
15915 posts
1300 upvotes
TOP SECRET SPAGHETTI…
Thanks guys.

He's in his 80s. he's only had 1 stroke and a little high blood pressure but otherwise nothing else really 'documented.

Wasn't trying to get rich from it and I don't even know what he wants as far as burial or cremation. Still need to have that talk.
Deal Addict
Jan 2, 2015
1162 posts
473 upvotes
Supercooled wrote:
Jun 10th, 2018 1:28 pm
Thanks guys.

He's in his 80s. he's only had 1 stroke and a little high blood pressure but otherwise nothing else really 'documented.

Wasn't trying to get rich from it and I don't even know what he wants as far as burial or cremation. Still need to have that talk.
The ‘only 1 stroke’ if it is recent along with will make his insurance very expensive if possible at all.

Assuming your parents have assets, then insurance is NOT what they need. It is more getting their affairs in order. I have been dealing with my aging parents, and thank the stars that we had these conversations as a family, even when we didn’t want to. I thought we had done a pretty good job, and it was still Re early challenging for me wen my mom had a stroke last year.

I would be making sure they have the following

Wills
power of attorney
Personal directive
Lists of all their accounts with locations
Investments holdings, assets

I would have the conversation on what they want in terms of their care, wishes in terms of assets (especially for there is real estate). It should be clear between the kids who is to take care of what. If there is an executor or someone doing all the work, then there should be discussions on why is fair, and what are the parents wishes .

You didn’t respond with the question to what do ythey need the life insurance to cover. That is a bigger question. Is it for estate planning purposes? Or something else .
On a 'smart' device that isn't always so smart. So please forgive the autocorrects and typos. If it brothers you, then don't read my posts, but don't waste my time correcting me. If you can get past the typos, then my posts generally have some value.
Deal Fanatic
User avatar
Mar 31, 2008
9838 posts
1374 upvotes
Toronto
He definitely won't qualify. It's a guaranteed loss for the insurance company. Even if he does, the premiums will be huge to the point it won't make sense vs the payoff.
Deal Addict
User avatar
Sep 19, 2013
1450 posts
387 upvotes
Winnipeg
You need to do a reading on "life insurance" at the conceptual level. Your concept of life insurance is way off.

You definitely do not need a life insurance. I am going to be blunt here (no offence meant), but you need to list the costs that you will incur if you were to lose your father suddenly. If the total cost is beyond your reasonable means. start saving towards it and keep aside an emergency funds of sort. You can invest those funds in liquid assets. That should do it.

If the cost is affordable to you at a short notice, then I wouldnt even worry about an emergency fund. Wish your father a long and healthy life.
In the beginning the Universe was created. This has made a lot of people very angry and been widely regarded as a bad move. -- Douglas Adams
Deal Expert
Aug 2, 2004
27955 posts
3678 upvotes
East Gwillimbury
80 years old? No one will sell you life insurance. He just won’t qualify.

@amitdi is giving you good advice. I suggest you and your siblings get together and discuss the inevitable

Top

Thread Information

There is currently 1 user viewing this thread. (0 members and 1 guest)