Should There Be Term Insurance for Caregivers of Elderly Parents?

Role of Caregivers in the Lives of Elderly Parents

Ageing is a natural process. The elderly deal with the challenges of losing strength, vision, hearing, and balance. Just like children need guidance when growing up, ageing parents need patient care, consistent support and constant supervision. Some of the important roles and responsibilities of caregivers are:

Daily Care

From helping the elderly follow a basic daily routine to managing their check-ups, medicines and food, the caregiver is there to look after all these.

Emotional Attachment

The elderly are not only physically dependent on the caregiver but are also emotionally attached. They feel a sense of security around that one family member. Offering companionship and helping parents cope with loneliness or anxiety is a key role of the caregiver.

Financial Dependence

In some cases, the caregiver may also be the sole breadwinner in the family. To ensure that there is no compromise in the care given to the elderly, it is crucial to secure finances as well. This is where term insurance for caregivers becomes meaningful!

Caregivers may not receive a salary, but their presence is priceless. Securing their role through term insurance can bring peace of mind to the entire family.

Term Insurance for Caregivers of Elderly Parents

A term insurance policy is a type of life insurance. This is a pure life insurance policy, where the insured individual receives life coverage for a specific tenure. Generally, upon surviving a term plan, there are no maturity/survival benefits. If you purchase a term return on premium policy (TROP), the insured receives a refund of the premiums paid so far. However, if the individual dies during the policy tenure, the appointed nominee receives the death benefit.

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You may purchase term insurance for caregivers of elderly parents. Here, the elderly can be the nominee, ensuring that in the unfortunate event of the caregiver's death, the parent receives the required financial support.

The loss of a caregiver can be an emotional shock for older people and may be very difficult to deal with. However, in this struggle, finances must not be a concern. That's what term insurance benefits can assure.

Note: In a life insurance policy, parents can be listed as nominees. However, they may not necessarily be the ‘beneficiary entitled’ unless specified. Keep in mind that only legal heirs are considered beneficiaries unless a will clearly specifies otherwise.

Things to Consider Before Buying Term Insurance for Caregivers of Elderly Parents

Some of the factors that you may consider before buying term insurance for elderly parents are:

Coverage Amount

Depending on the financial requirements of the elderly parents, you must decide the coverage amount. For this, you may calculate the monthly expenses for a certain number of years. Do not forget to add inflation as well!

A Will for Beneficiary

As stated above, even if the elderly parents are nominees, legal heirs may have the right to the death benefit. So, you must consider writing a will to secure the interests of the elderly. Check the details with your insurance provider.

Policy Tenure

Selecting the right policy tenure is important. You need to keep in mind the needs of the elderly and choose a tenure accordingly. The years of dependency of parents can help you decide a practical tenure.

Alternative Planning

Term insurance is essential, but additional financial planning strengthens security. Therefore, covering the immediate and essential financial needs of the elderly is necessary. Building an emergency fund and/ or purchasing health insurance for elderly parents can be a wise decision.

To Conclude

Caregivers can be anyone from the family. It may be the spouse, children, grandchildren, siblings, etc. While the entire family cares for the elderly, some are more special and closer to them. These are the caregivers, and around them, the elderly feel most secure and understood. Purchasing term insurance for caregivers of elderly parents can be the right way to secure the finances of the elderly and reward the caregiver. A term plan ensures that this silent contribution is financially protected.

At Jio Insurance Broking, we have a range of options for term insurance. We understand that life insurance is not just about replacing income; it’s about making sure parents continue to receive the same level of care, without financial worries.