Hello fishes. Need some insurance advice.
My parents are dependent on me. My 62 yo dad and 57yo mom do some part time work and makes $1000/mon. Dad has some health complications like diabetes, high bp, genetic heart issues, liver problems etc. Does it make sense to get a life insurance for him - 20 yr term, $1M coverage. Premium is around $500. I am thinking I can pay the premium but if something happens to dad, it will help my mom pay be self-sufficient

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You might need critical illness insurance more than life, in case your dad gets into really messy / expensive complications. That seems to be your highest downside scenarios (lost of income and medical expenses)

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Have a lower term for your father, like 300k (he makes 12k per year right? So that means he is supporting 30 years of his income). Make another term insurance for yourself and add them as beneficiary. You will have a much lower premium (assuming you also don't have diabetes and other health issues)

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The goal of insurance should be to have enough coverage to replace lost future income, not be a windfall. Otherwise you’re paying for a very expensive lottery ticket, not insurance. To summarize the good ideas already mentioned in this thread:

$350k policy on your father, listing your mom as the beneficiary, to cover the lost income in case your father dies.

A policy on you with your parents as the beneficiaries of you die, equal to whatever they would need to have the same amount of care you provide, but probably more since they’ll need to hire more nurses and/or carers to cover you not being around to help with day to day stuff in the coming years.

Long-term care insurance for all three of you. Long term care (nursing homes) are incredibly expensive, like at least $50k a year. It’s a cost no one really wants to have, so we don’t get coverage for it. Find a good facility in your area, figure out how much it would cost, and get coverage to help with the cost.

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$500/month, so $6k/year?

Yeah, I know its a lot, but the other side is if something were to happen to dad. Mom would have enough for the rest of her life.

Seems like a high premium I would look around a bit more for better quote.

Definitely get life Insurance though. I think It’s a must for everyone. Just make sure you fully understand the coverage benefits.

Why $1M? That’s excessive considering they live on $12k a year now.

They don’t live on 12K a year. They live with me and I support them

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