It's useful to think that way, until you add more options:
G: 5% chance one of your parents die, preparation costs $X
H: 3% chance you die, preparation costs $Y.
What at what values of $X and $Y do you prepare?
G: 5% chance one of your parents die, preparation costs $X
H: 3% chance you die, preparation costs $Y.
What at what values of $X and $Y do you prepare?
The 5%/X 3%/Y question is also hard to answer since one also has to consider how much is it mitigating, if I survive with chronic pain or something then that loses value. Assuming full mitigation:
I'd be willing to pay ~16000$ to skip a 1/30 chance of death (valuing ~480000$ to live ~50 years, or 9600/year being-alive tax)
For my parents I'd be willing to pay ~9000$ to skip a 1/20 chance of one of their's death. (valuing ~180000$ for them to live ~30 years, or 6000/year being-alive tax)