Do empty-nesters need insurance?
When your kids have left home, a lot of things change – and, sometimes, pretty quickly.
It’s a lot quieter, for one thing. You might notice that your pantry and fridge stay stocked a bit longer and your washing machine can breathe a sigh of relief.
But what about your financial life?
If you find yourself moving from being a household-with-kids to one without, it can be a great time to assess your insurance cover.
What cover may you need?
To ensure you’re protected against the unexpected, you may still need to have some insurance cover in place.
But what you need, and how the policies fit together, could change as you transition into a new life stage without dependents under your roof.
Some people at this life stage have paid off their mortgages, or very nearly. Some may even be thinking about downsizing if they no longer need lots of bedrooms for children.
This can mean that your outgoings may be lower, which may reduce your need for as much income protection cover. If you no longer have debt, you might not need as much life cover. But things like trauma cover and health insurance can become even more vital.
What are your goals?
When you become an empty-nester, you have an excellent opportunity to reassess your plans and start putting your own needs first. Maybe you want to save up for a big trip or it’s time to boost your business with an eye on selling it in the future.
This might be a chance to think about what you’d like to achieve over the coming years, and decades, and what you’ll need financially to make that happen. It can help to focus your mind on where your insurance needs are greatest.
Balancing costs
The cost of premiums does tend to increase as you get older, and that can be more of a concern if you’re approaching retirement or planning to reduce your work hours.
If that’s a concern for you, you may be able to rethink your insurance plan so that the most important aspects are secured. If you’ve paid off your mortgage, for example, you may be able to dial down your life insurance cover and instead divert that part of your budget to cater for your health insurance.
Like to discuss your needs and goals? Get in touch. We can help you understand how to adjust your financial protection, and whether taking out new cover is an option.
Like to talk?
Insurance isn’t a “set and forget” purchase and this is just another life stage at which it’s important to make sure your settings are still in line with your family’s circumstances. So, please don’t hesitate to contac us: we’re here to help.
Give us a call today.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.
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