While it’s the global ones that garner much of our attention, it’s the personal ones, often caused by an unexpected injury, illness or accident, that rarely come into our consideration until it’s too late.
So here’s something you’d prefer not to think about, but should – what happens in the event of a serious illness or injury to an adult child?
There’s a lot of time spent ensuring parents have the right levels of life and income protection insurance so their family and assets are protected if they’re unable to provide.
And when parents have raised their children, they generally begin turning their attention towards planning for retirement.
Yet retirement planning often ignores single adult children and their lack of insurance coverage.
It’s important for parents to consider what would happen if their adult offspring, be they working or studying, became permanently disabled or diagnosed with a critical illness.
Obviously, parents would want to support their child, but if the child was without appropriate insurance coverage it would leave the parents with a substantial financial burden and require a re-evaluation of retirement.
The statistics show that nearly a quarter (23%) of adult children aged 20-34 are still living in the family home, while 8% of those 30-34 are still living with their parents.
These figures are often seen to be a result of financial issues and highlight a significant portion of adult children are still relying on their parents.
The question these parents need to ask themselves is, “what happens if they have to rely on us for care costs and medical expenses?”
$300 dollars a week in care and medical expenses turns into more than $300,000 over a 20 year period – a substantial hit to any superannuation account.
Starting a dialogue with single adult children about protecting themselves and their parents from the unexpected would be a smart strategy.
Peter Mancell is a director of Mancell Financial Group and FYG Planners AFSL/ACL 224543. This information is general in nature and readers should seek professional advice specific to their circumstances. If you want help with your financial future, we’re arguably the best financial advisor in Australia. Think you need a lawyer for a superannuation claim? Think again!
