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Why you should convince your parents to buy life insurance

Originally posted: September 5, 2018 Updated on: September 4, 2018 by David Lewis

Let’s rap about Filial responsibility laws.

They exist in a lot of states now, so your odds of running into them at some point are pretty good.

The law itself requires you to take care of your indigent parents. Usually, it’s enforced when your parents have no more money left, but they still need nursing home care or some other type of state-funded aid.

Meaning, if mom or dad becomes old, cannot take care of themselves, and needs nursing home care, and is getting money from a state benefit program (e.g. Medicaid), and… the nursing home or the state believes you can afford to pay the bill (which is up to the discretion of the state or nursing home), then you can be sued for the bill.

This actually happened to a poor fella in Pennsylvania. He had to pay for his mom’s nursing home care and then when she got out of the home, she fled back to her home country… the son had to repay the nursing home for all the services his mom used.

More and more of these cases are ending up in court because… state governments are going broke paying for every Tom, Dick, and Harry.

More:

After mom and dad die, some states want their money back. If your parents receive Medicaid benefits, the state generally looks at it like a “loan” of sorts and can attach assets of the estate after death.

There are ways around it but it all requires advanced planning… something lotsa folks just plain don’t want to do.

So… what does this have to do with you? If your mom and dad do not have sufficient savings, perhaps you will be called on to pay for their healthcare. And… if the state decides to enforce its laws, then you have no choice in the matter. They will force it on you.

Is it fair? No.

But… it’s something states are doing now. So… You have a choice: take the risk and try not to think about it until or unless it happens or… convince mom and dad to get life insurance and long-term care coverage.

You can learn more about how life insurance can help them (and you), here:

https://www.monegenix.com/life-insurance-buyers-guide/

Filed Under: Financial Planning, Life Insurance Tagged With: Filial responsibility, Filial Responsibility Laws, life insurance, long-term care, LTC laws, taking care of aging parents

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David Lewis
Life Insurance Specialist | Registered Financial Consultant | Author

Reader Comments

Over the years, I’ve somehow managed to attract the attention of professionals, business owners, as well as insurance agents and financial planners.

Some of these folks have become regular readers and some… some have become loyal clients and even friends.

Here is a small sample of the comments I’ve received from some of my readers and clients:

*****

“I found your comments about the ‘be…own bank’ stuff straight to the point and (maybe) helpful.” — Joe

 

***

“I have known David for many years now and can say that he is a very honest and knowledgeable person and a great financial advisor. His insights are always backed up by tedious research and he has a real passion for helping people with their most important financial decisions. My gut tells me that after working with David you will likely feel like every stone has been uncovered and you will be confident that your financial well being is in good hands and you will be on your way to feeling financially secure. I do not regularly endorse other advisors in my field but I feel comfortable giving a strong thumbs up for David.”— Antonio Filippone, Registered Financial Consultant

***

“Keep up the good work..I like reading your emails..” — Kelechi

***

“Just read through your term v whole life blog from 2015, found it very well done and emailed it around the office here (I’m a CFP with [company name removed] ).” — Doug, CFP

***

“I read your very thorough discussion of the IBC on on nuwireinvestor. I wanted to thank you for providing such relevant content on the subject.

I found your piece very well done and I found your explanations very analytical. Thank you for that service to readers.

…Content creators like you inspire me and I’m so thankful that we live in an age where so much knowledge is available to us.” — Wayne, Dentist

***

“Watched your video on time value of money and whole life compared to other investments. Very interesting.” — Alex, property and casualty agent

***

“You are a breath of fresh air. Thanks.” — Bob

***

“After speaking with several brokers, I decided to work with you because you were the most informed across numerous life insurance companies and the nuances of their policies. You helped me select a policy with twice the internal rate of return than the first quote I had received from another broker. Life insurance is now a significant part of my estate, and I look forward to working with you for many years to come.” — Keith, Public Relations

***

“Life insurance as it exists today is undoubtedly a pale imitation of what it could be in a free market, but in terms of safety (and other utility), it’s the best option I’ve discovered so far.

There’s still a lot I need to understand about how life insurance works as a long-term savings vehicle, but for now I’m at least satisfied that some of my money is a little safer from theft and wildly arbitrary taxation.

It’s too early to tell, but I’m cautiously optimistic. I’m currently putting about 20% of my savings into life insurance, with the rest split between precious metals, investments, and traditional retirement accounts.

I wish life insurance could offer a better rate of return, but with an out-of-control pirate state sailing the financial seas, pillaging with impunity, I’m happy to have some measure of safety, even if it means giving up a lot of potential profit.”

Tim, Self-Employed

***

“At first, I was a bit shocked at your extremely informal writing style, but it has grown on me. I actually look forward to your emails and the intriguing stories. The style breaks up the monotony of the other emails. Your emails have gotten my butt in gear to create my long and short-term financial plans.

Your writing and book recommendations have been an immense aid in teaching myself better finance principles and proved to me that it is very important to save money for all of those opportunities and curve balls that life throws at you.

I am now the happy owner of two life insurance policies, and I am armed with the knowledge to use them effectively. Thanks!” — Tom, Nuclear Engineer

***

“Once the concept of whole life started to click, I was very sure this was the direction I wanted to go. You showed me how to get there and tailored my policy to meet my particular needs and comfort level- well, we pushed that a bit, but I’m glad we did.

My only question is, where were you 30 years ago to take me down this road?” — Shari, Grant writer

***

“Your meticulous attention to detail assures me that I know exactly what to expect. You’ve given me a different perspective about making my money work for me. I actually feel I have control.” — Marilyn, Legal Assistant

*****

 

Not all comments are positive, though…

Occasionally, I receive hate mail (or random comments on social media) from folks who are not clients (and never will be). 

Here’s what “the other side” has to say about me (in case you were wondering):

*****

“Whole life is what scam-based insurance people like David Lewis use to make a lot of money in commission at your expense. Get term life insurance. Never mix investing and insurance.” — L.C.G., self-proclaimed financial expert and forum moderator; [location withheld]

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“You ‘talk people into’ buying whole life insurance policies, which I personally think are not just a bad investment, but verging on a scam.” — R.F., Real estate investor and developer; [location withheld]

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“According to David, most advisors are ideologues, spewing the failed practices of the companies who control the financial service industry. Only his way of doing things puts the client first.” — Joe, Financial Advisor [location withheld]

***

“David, I understand that you’re using Ayn Rand’s premise…

Well, you’re entitled to your viewpoint. But, I consider a flat dismissal of the codes that professionals have, for centuries, developed, refined, and attempted to live by to be absurd — and, frankly, rather silly.” — J.O., Financial Planner [location withheld]

***

“I couldn’t disagree more with your view of the financial services industry.” — C.G., Certified Financial Planner [location withheld]

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