Millions of middle-aged Californians in the so-called “sandwich generation” are feeling the financial pressure of serving as primary caregivers for their aging parents, while also shouldering more of their adult children’s financial responsibilities. To save money and ease concern, the California Department of Insurance (CDI) urges those who are financially supporting their adult children while also assisting their aging parents to understand their insurance needs.
“Making informed insurance decisions can help alleviate the financial pressures felt by the sandwich generation,” Commissioner Jones said. “Increasingly, Californians are feeling the emotional and financial strain of caring for their adult children and aging parents. It is important to know your options and take steps to safeguard your assets to ensure your long-term financial well-being. The Department of Insurance is here to help.”
To help consumers get educated about insurance needs for age 50 and beyond, CDI encourages consumers to access Get Ready Resources for Turning 50. The resource kit includes tips and tools, such as challenging questions to consider, and a Take Action Now checklist of things to do to ensure unforeseen insurance needs do not get in the way of financial stability.
· Middle-aged parents should openly discuss post-college health insurance coverage with their adult children and determine who will foot the bill for co-pays and deductibles. If the adult child lives at home, parents should have the same conversation about auto insurance.
· Caregivers should make sure their aging parents enroll in Medicare before they turn 65. If there are gaps in coverage, Medicare Supplement Insurance may help.
· For some, depending on age and future income, purchasing an annuity may make sense as part of your long-term financial planning.
Life insurance options are available with no exam and few health questions asked. It is also sold at a guaranteed rate. Even aging parents should be prepared to fund funeral or cremation expenses so that their children do not have to be responsible. Medicare only provides about 260 dollars towards burial expenses and funerals can range from 5 to 10,000 dollars. Even a small policy that will cover final expenses makes sense. And with some insurers, the age limit has been increased to 80 years of age.