Normally you’d think of getting life insurance for your dependents – your significant other, your kids, even your grandkids. But over at Mapgirl’s Fiscal Challenge, she’s single with no children, but still has a sizeable life insurance policy. The beneficiary? Her parents. In case something happens, she wants to be sure that her parents have some money to help them in their retirement in her place. They have no idea.
First, I was surprised. Then I felt guilty for never thinking of doing that myself. Then, I remembered that I really don’t have much of a policy for my wife either. Right now, since it’s just the wife and me, we each just have a $100,000 policy through work. Basically the logic is that if something happens to either of us, we are each still able to support ourselves and move on financially. (Plus I’m not allowed to go skydiving anymore.) But once there gets to be even a whiff of possible daiper duty, we planned on getting significant policies.
Back to the parents – both of ours are in similar situations – They are relatively well-prepared for retirement as far as we know, but it’s not like they are Rockefellers. It’s definitely still a point of concern for them. And indeed they could have put away more if they weren’t paying for all or part of our schooling (and feeding and clothing us and all that…). If they were to fall on hard times, we and our siblings would definitely come in to help, whether with time or money. But what if we weren’t around? Of course our parents would never suggest such a thing, but in these days of expensive healthcare and long life expectancies, maybe this will become more common. Another thing to chew on.