Steps to Start Supporting Your Parents Financially
The ever-rising cost of living makes it difficult to sustain even if your parents have a steady income. Irrespective of culture or background, many children are expected to perform at least some role in caring for their parents when they’re growing old. But what this looks like — and the financial and emotional burden it takes — can differ from family to family. You might want to support your parents with critical illness insurance or life insurance. If you think you might be in this position in the coming years, start out by taking the following steps now.
- Talk to your partner/spouse
Before you promise anything or set expectations, check with your spouse and any siblings who are in the family. It is necessary to be on the same page about elderly care with your partner/spouse. Financially and practically supporting each other’s parents can put some severe pressure on your marriage. So, talk to your partner/spouse about what you would like to do for your parents. The first step in determining how to help your ageing parents financially is not necessarily to talk to your parents. However, with time, the conversation may come up.
- Discuss with your parents
Next, you will want to have a frank conversation with your parents. You do not have to begin by laying out the specific details of their budget. Instead, try generally talking about your parents’ goals and wants as they near old age. During this conversation, you might bring up some of the options you have already thought out.
- Evaluate the financial situation
Once you’ve gotten together like a whole family — spouse, parents, and maybe siblings— for everyone’s requirements, decisions, and limits, it may be an opportunity to have a more honest conversation about money. By this time, you should already comprehend what you are ready and able to provide to your parents’ care and health. Surely, you also have an idea of what your siblings can do to help. Ask your parents if they have already invested in the life insurance or critical illness insurance.
- Consider a comprehensive insurance
If your parents were not able to get a full-proof plan in case of any mishaps, you should get one. It will take a load off you if anything happens. For example, the SBI Life Poorna Suraksha Plan offers you extensive coverage in case a critical illness occurs. This plan is term insurance combined with an increasing critical illness insurance coverage. You only need to pay a fixed premium during the term of the policy. This plan will help you secure your parents’ future.
- Start out early
As memories start to diminish or medical needs becomedifficult, older adults sporadically have trouble planning their finances. If you see this happening to your parents, you may want to start helping with their finances sooner rather than later.
Caring and looking after elderly parents can be a tad bit taxing — both emotionally and financially. Taking the time now to plan for this possibility will help take some of the pressure out of the situation for everyone.