“I have to figure out a way to leave my mom with something should something happen to me”: How can I protect my mother financially in case of an unexpected event?

Hi Money Minder,

I’m in a bit of a pickle here and I’m pretty confident about all the info I’ve got (even though some folks keep saying I’m wrong).

So, my dad is dealing with work-related cancer and the outlook isn’t great. He’s getting a big monthly pension, but he’s decided to take less now and save the rest for either his spouse or a beneficiary. He’s 58, but the doc says he won’t be around long enough to be considered "elderly."

My mom, who’s 67, will get the rest of the pension after my dad passes, and since I’m expected to outlive her, it will eventually come to me. Problem is, if something happens to me before my mom, she’ll be left high and dry. The pension stops with me, so I need to find a way to make sure my mom is taken care of if I’m not around.

I’m clueless about life insurance policies and I’m 34 and in decent health. I was turned down for short-term disability before due to a retinal issue. Also, my salary now is good, but the pension is way more. Will a life insurance policy be based on my current pay?

Any help or tips would be awesome. Thanks in advance!

Cheers,
Worried About Mom

Response from THE MONEY MINDER:

Hello There,

While your situation is indeed complex and challenging, it’s admirable that you’re seeking a solution to ensure financial security for your mother in case of unforeseen circumstances. Given the circumstances surrounding your father’s health and pension arrangements, considering life insurance as a means to provide for your mother in the event of any eventuality is a wise decision.

While your health condition and past experience with short-term disability insurance may present some challenges, there are life insurance options available that cater to various health conditions and situations. It may be beneficial to explore different types of life insurance policies, such as term life insurance or whole life insurance, to determine which aligns best with your current health status and financial situation.

Additionally, taking into account the disparity between your current salary and the larger pension amount, it’s crucial to assess your needs accurately to ensure that the chosen life insurance policy adequately addresses potential financial shortfalls in the future. Working closely with a reputable financial advisor or insurance agent can provide valuable insight and guidance in selecting a suitable policy that offers the necessary coverage for your mother.

In navigating this process, it’s essential to conduct thorough research, compare different insurance options, and seek professional advice to make an informed decision that best serves your mother’s financial well-being. Prioritizing financial preparedness and contingency planning can offer peace of mind and security for your loved ones in the long run.

All the best in finding a suitable life insurance solution tailored to your unique circumstances. From THE MONEY MINDER.