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Becoming the caregiver for a parent or loved one involves manynew responsibilities. As a caregiver, you are responsible for thehealth and well-being of your loved one. In addition to thephysical responsibilities, you may assume certain legal andfinancial responsibilities.

You may be appointed the power of attorney or trustee overassets, accounts and trusts. You could be named executor of a willor a beneficiary of a life insurance policy. While most caregiverstake on these duties with a love and dedication that isincomparable, many are inexperienced in the type of financialplanning they should be implementing for themselves in order toprotect their loved one in the event of the caregiver’s death.

Protecting your loved one

In some caregiving situations, the parent or loved one receivingthe care will have Social Security and retirement funds turned overto the caregiver to help defray expenses. While this can be a bighelp, you still must consider protecting the regular householdincome your family’s breadwinner brings in. By adding disabilityinsurance coverage to your family’s financial plan, you can makesure that some portion of your normal household income is retainedin the event of the disability of you or your spouse.

A Medigap insurance policy on your loved one can help bridge thegap between the cost of medical care and the reimbursementsMedicare provides. This relieves some of the financial burden onyou, or your loved one, although it will require the payment ofpremiums for the added coverage.

Life Insurance on thecaregiver is also a critical consideration. In the event thatsomething happened to you, who would be in a position to assume thecaregiver role? When determining how much life insurance to buy,you must first ask yourself:

* Will another family member be able to step in and care foryour loved one?

* Will your loved one’s retirement income and savings beavailable to cover living and health care expenses?

* Does your loved one have a long term care policy that canprovide nursing home care or care at home?

* Will a home health care nurse need to be brought in ifsomething happened to you? And if so, will your family need to payout of pocket for one?

* Will any other family members be willing to contribute fundstoward health care expenses for the loved one, if required?

Affordable terminsurance is probably a good option for you to consider. Levelpremium term can normally be purchased for 10, 15 years, or longer.Your premium remains fixed over the period you choose. Or you mayconsider yearly renewable term, which renews each year withincreasing premiums. One of the insurance professionals at SBLI ofMassachusetts (www.sbli.com)would be happy to provide you with more information and a freequote at 888-GET-SBLI. SBLI has been rated A+ (Superior) by A.M.Best for 18 years straight. Visit www.ambest.com for more detailson the rating system.

SBLI and The No Nonsense Life Insurance Company are registeredtrademarks of The Savings Bank Life Insurance Company ofMassachusetts, which is no way affiliated with SBLI USA Mutual LifeInsurance Company, Inc. NAIC #: 70435. SBLI products may not beavailable in all states.

Courtesy of ARAcontent

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