You’ve been working hard all your life to build that lump sum to retire with. What have you got planned? What does retirement look like to you? Traveling around the world or Australia? Or is it as simple as doing nothing? This might be your plan but what happens when life gets in the way?

When looking at possible risks to a happy retirement, one that’s not often on the radar is “do my children have adequate personal insurance”?

Many young people just out of home would state that their ‘backup plan’ if something goes wrong is to return home. As a parent you want to help your kids with everything they need but sometimes that means putting your dreams on hold to help them. Have you thought about what would happen if one of your children was seriously ill or involved in an accident and didn’t have insurance? If they’re single and renting, the easiest and most obvious option may be to move back in with mum and dad. If they have their own family, who will look after them? You might be their only option for support to help with mortgage repayments or caring for your child and/or grandchildren. Or you may become the primary carer for your grandchildren?

So what is the best approach to ensuring your retirement is not at risk, while ensuring your children are protected?

• Sit down and talk to your children about their situation if the unthinkable was to happen. Remember that this is an important conversation to protect you and your children’s lives and future.
• If they haven’t already, encourage them to speak to an adviser who can help guide them. They may already have plans to protect themselves, however many young people feel they are ‘bullet proof’ or alternatively, aren’t earning enough to cover their own daily living bills let alone an additional cost for insurance cover.
• Discuss the options: you might choose to sacrifice some of your funds now to cover the costs of their insurance until they can afford to take it over. Think of it as an insurance policy for your retirement rather than paying for your children’s insurance policy.

Remember there are many ways that the cost of insurance can be funded and worked in with existing budgets. As they are young, the cost of insurance cover should be minimal – at least a lot less than the potential impact on your financial future should the worst happen. A little planning now can save potential heartache later.

If you would like more information please call 1300 ELSTON or email info@elston.com.au and an adviser will be in touch.