At some point our children will start to spread their wings, launch into their own lives and, importantly, become financially independent. Thinking about insurance is part of being financially savvy.
Russell Hutchinson in his article on buying insurance for adult children talks about the myriad of ways we support our children into financial independence and how we can maximize our support whilst keeping our costs down.
Often a car is our children’s first large financial purchase. As parents we may help buy the car and we may help in keeping the car safe such as paying for the registration, WOF and servicing but expect our child to pay the running and repairs costs themselves. In terms of car insurance it’s often cheaper to add a child to your existing policy than to have a new policy in their name. Our aim as parents is to support our child in the cheapest and smartest way possible.
The next big purchases our children make are when they go flatting. Buying appliances and furniture can also mean taking out personal loans. A student loan will be written off if the borrower dies before the loan is repaid, but it’s unlikely a hire purchase agreement will be so considerate.
Which is where our adult children can start to become unstuck. Insurance to protect a loan can be expensive and have limited features. As an alternative, life, trauma and even income protection insurance can be cheaper for your adult child. At 20, most people generally have long life expectancy, have no pre-existing conditions and are relatively healthy so their cover is relatively cheap.
It’s pretty easy to sort out, online and in your own time, with Pinnacle Life. No paperwork, no intrusive questions from someone you don’t know, just a simple and easy online process. Check out our tools and calculators online if you're feeling a bit lost.