Insurance Planning For Mom
BOSTON (CBS) – Is mom adequately insured? Does she have too much insurance? Find the policies. Next, review them and be sure you have the latest policy and that the premiums are paid. It would not surprise me if you found that mom has saved expired policies.
- Homeowners: If mom owns her home make sure she has a homeowner’s policy. No one requires you to have insurance coverage if you no longer have a mortgage. If she is renting, be sure she has a renter’s policy. When you and mom did her net worth statement is there anything of value that may need special coverage such as a stamp collection, jewelry or antiques?
- Auto Insurance: There is a discount for drivers over 65 and another for low mileage. One of the hardest things you will ever need to discuss with mom is whether she should be still driving.
- Health Insurance: Medicare does not cover everything. She should have a Medigap policy, which covers things Medicare does not. There are eight Medigap providers in Massachusetts. She also needs Medicare part D for drug coverage.
- Life Insurance: As we age life insurance becomes very expensive and our need for life insurance decreases. Life insurance is used to cover the loss of our income stream to our dependents.
Some individuals own life insurance to pay for their funeral or to leave an inheritance to the children. If mom has paid up policies check the cash value and beneficiaries. You want these policies stored in a safe place.
- Long Term Care Insurance: I don’t know if she needs LTC. This is a personal life style call. If she can’t afford the premium then she probably doesn’t need it for she will be eligible for Medicaid.
If there is a family home you want to protect then you and your siblings can buy the long-term care insurance for her. Long-term care insurance premiums are considered a medical deduction for tax purposes.
On Saturday May 17th Dee will be the keynote speaker at The Money Conference which is a FREE one-day event presented by The Office of Massachusetts State Treasury and the Massachusetts Financial Literacy Trust Fund, in conjunction with local cities and community partners to help households build their financial knowledge and improve their financial behavior through quality financial education.
Saturday May 17, 2014
8:30 am – 3:00 pm
Everett High School
100 Elm Street
Everett, MA 02149
Questions? Contact Sheila O’Loughlin at (617) 367-6900.
Do you feel your need for financial education and empowerment is urgent? You are not alone! Americans are saving less, spending more and carrying credit card debt over from month-to-month, suggesting that the painful financial lessons of the recent past may quickly be forgotten.