If you are a pre-retiree or retiree, could you afford to financially support your adult children and/or your grandchildren if they faced serious injury, illness or worse? How would your income stream be affected and what would be the long-term ramifications for your retirement lifestyle? Here, we outline some important considerations for protecting your retirement and the wellbeing of those you love.
With mounting financial pressures facing young families, including the costs of mortgage repayments, funding their offspring’s education and the rising costs of day-to-day living expenses, sometimes personal insurances are overlooked for fear of being unable to meet ongoing premium payments.
This level of risk exposure can have a knock-on effect for the parents of adult children. For instance, if your child faced serious illness or injury and they had no insurance from which to draw upon, you could find yourself having to financially support their partner and children…not to mention supplementing the costs involved in loan repayments and other ongoing expenses usually covered by their income.
By providing either temporary or permanent financial support, your retirement income stream could quickly be eroded by these unforeseen expenses. We can collaborate with you to tailor an affordable and appropriate insurance solution designed to shore up your retirement plans by providing insurance cover for your adult children.
As parents or grandparents, you may opt to supplement or fully fund a range of personal insurances for your adult offspring and/or their children. The cost of these insurance policy premiums may equate to a few hundred dollars each month but compare that with the cumulative cost of ongoing medical care for an ailing child or supplementing the income of a deceased breadwinner (which could equate to thousands of dollars annually). If your children were to become financial dependants, or their own offspring were to join your household, you could find yourself significantly out of pocket and your retirement lifestyle goals may have to be abandoned.
We are accustomed to coordinating full family discussions, whereby we sensitively offer up a range of real life scenarios to help you and your adult offspring make informed decisions about your financial futures. If your children have existing insurances, we can discuss their appropriateness for their current set of circumstances.
Talk to us about a tailored package of insurances for your adult children, or grandchildren, designed to be compatible within your overall retirement plans. Please contact Wealth Fundamentals on (07) 3720 1299.
Chris Lane is a financial adviser at Lane Moses Pty Ltd ABN 56 092 186 117 trading as Wealth Fundamentals. Wealth Fundamentals and its advisers are Authorised Representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306.
The information (including taxation) contained within this document does not consider your personal circumstances and is of a general nature only - unless otherwise stated. You should not act on it without first obtaining professional advice specific to your circumstances.