It is very likely you do — or will — have some responsibility for the care of aging parents. If something should happen to you, will a sibling or spouse step in, or would outside help need to be considered? The same holds true if you are caring for a sibling or child with ongoing special needs. How would your survivors (or the person you are caring for) pay for home health care, adult daycare or a long-term care facility and other medical expenses? A life insurance policy for the caregiver can ensure that the care continues when the caregiver is gone.

Estimating the need
When your loved ones rely on you for care as well as income, it makes sense to carefully consider what it would take to continue that care if something were to happen to you. Start by calculating the cost of annual care, including rates for a care center or in-home assistance, other living expenses, insurance costs, and medications or medical treatments not covered by health insurance. You’ll also need to factor in the approximate number of years these expenses might continue.

Then determine whether there is retirement income, savings or other programs available to help cover these expenses, whether the person has a long-term care policy and how long these assets may last.

This exercise will give you a basic idea of the gap in annual care costs, which will help you decide approximately how much insurance coverage would generate that income.

Do you need two life insurance policies?
In addition to a policy that covers the needs of the loved one you are caring for, don't neglect your other life insurance needs. If someone will suffer financially if you were to die prematurely, life insurance can help. Low-cost term life insurance is a simple, affordable way to get started.

To explore buying life insurance to cover your current needs as a caregiver and also to plan for your family’s future, talk with a local Farm Bureau agent today.