At CommonCents Financial Planning we believe in beginning life insurance discussions with adult children well before any crisis emerges.

Early action establishes responsible financial habits in your adult kids, reduces risks for them and for you and can help prevent significantly greater difficulties later.

Many parents hesitate having this talk for fear the topic feels too morbid yet once initiated these conversations typically bring relief and clarity to everyone involved.

Highlighting Practical Realities Gently

When we ask young adults what’s their primary option for safety in the event they get sick or injured and their response is a very quick and simple ‘I’ll move back in with mum and dad’!

You can utilise this insight to assist in reframing the discussion of insurance to be an enabling, authentic path to self-sufficiency rather than relying on the dependence of mum and dad.

A bit of help in paying premiums during the establishment phase provides essential breathing room whilst good practices develop simultaneously protecting retirement plans from becoming default safety nets.

Helpful yeah?

Try Using Relatable Examples 

Of course, real situations resonate the most deeply and if you don’t have any stories from your own family and friend group then please reach out to us as we have seen dozens of situations where some good conversations around insurance could have gone a long way.

Consider the case where the daughter in law of one of our clients passed away unexpectedly which left the husband facing enormous pressure on where they were to live and how they were going to get by. The end result was the son and grandchildren moved in with the grandparents which emotively was an easy decision to live with but financially it became a very real source of tension.

We’ve assisted other clients who have covered extensive grandchildren costs so that there is no breakdown in relationship with the surviving spouse and access can be maintained with the grandkids.

Also, in situations where there is a prolonged illness helps to demonstrate how income protection payments preserves finances and relationships and prevents households from requiring grandparent accommodation during vulnerable periods.

Structuring for Growing Responsibility

When discussing insurance with your adult kids make sure that the cover is in their name or in their super and that the cover is not in your (the parent) name. 

If they need help with premiums then you can either pay for the premiums directly or reimburse them with the same amount. My preference is that you pay the premiums directly yourself as that way you know the cover is in place and that the premiums are genuinely paid.

As financial independence and responsibility grows in your adult kids then transfer the premium responsibility to them.

Early proactive discussions of finance including life insurance help to cultivate lifelong responsible approaches to financial behaviours and decisions.

You can introduce topics naturally during gatherings or alongside milestones like a property purchase or family expansion.

At CommonCents Financial Planning we excel at facilitating comfortable productive conversations through clear and genuine illustrations of why doing it is so important and the potential risks of not doing it.

Contact us to chat about how you can take a step toward comprehensive financial security that spans generations.