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Are your children – and their families – covered?

How to talk to your family about their personal life insurance needs, for your peace of mind

It’s a crazy old world – it always was, but it seems so much crazier now! More than anything, these last few months have been a time to stop, take stock and realise the things that are most important – family, health, happiness and looking out for each other. And a big part of that comes down to ensuring they have enough to get by. That’s why you might be worried about how your grown up children and other family members would cope financially if something bad happened.

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It’s a sticky problem, for sure. They’re not children anymore, and even when they were, when did they ever listen to you? Never, once they got to their teens!

Still, with the world turned on its head, right now could be what is called the ‘teachable moment’. While getting insurances sorted might have once been well down the priority list, your children may be more ready to see that no one can predict what will happen and that having the right cover in place can really help. Knowing your children and their family are covered, will mean you know you’ve done everything to look out for them – so you can sleep easier at night.

Here are some things you might like to talk through with your adult children and other family members.

No-one can see the future

If your children are old enough to be past the stage of thinking they’re invincible, they’ll be more open to the idea that anything can happen. You might not want to dwell on what could happen, but having the right cover in place will make it so much easier for everyone immediately, and even years down the track.

Protect the family’s future

Life insurance can give your children peace of mind (and you too!), if the worst happens. It pays a lump sum if the covered person dies or is diagnosed with a terminal illness. The family will have their future financial security protected – for example, the mortgage and other debts can be covered, university funds set up for the children and other financial pressures taken away. That way they won’t have to add financial worry to an already difficult time. Companies like Cigna offer this kind of cover in various forms.

Protect against illness and injury

Your children may think that ACC will kick in if they are injured or sick. But it’s worth reminding them that these payments are limited to accidents. ACC will not pay for sickness. That means that if they’re diagnosed with cancer, ACC may not allow them to be entitled to ongoing payments. Trauma cover can come in very handy in these scenarios, along with insurances like complete disablement cover from Cigna. This offers a lump sum that could help with debts, or be used for day-to-day expenses.

Maintain the family lifestyle

Sometimes all your children need is help to meet mortgage or rent payments if the household income is interrupted by illness or injury. Having income cover will mean that even if they can’t work, they’ll still have money coming in. That means that the family won’t have to deal with an unexpected change in lifestyle while also supporting someone through illness or disability.

Whether it’s mortgage repayment insurance, trauma cover or income protection, talk to your children about the options to guard themselves and their families against the financial impact of an unforeseen illness or injury.

Look out for your family

If you’d like to ensure your children have their future financial security taken care of – talk to them about their plans.  Do they know what back up they have if the worst happens? If you’re clued up on what options there are for insurance, you could help them see the risks more clearly, and get them to understand what they can do to protect themselves and their future.

Get them to visit to learn more about the various insurance options available. If they need help figuring out the best options for their individual circumstances, it can be helpful to encourage them to talk to a financial adviser for some personalised advice.