You should talk to your adult kids about...

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Insurance. Life insurance. Term life insurance to be specific. Why? Because too many young adults are under-insured for the catastrophic event called 'premature death'.  They're under-insured for simple reasons like:

  • They focus on the issues of today and not the risks of tomorrow

  • They don't think there is room in the budget

  • They assume they are well-covered by their employer's group life plan (usually group life insurance is about 2x salary and disappears the minute employment stops)

To be clear, we're mostly talking about your married kids.  The spouse and kids are at a huge risk from a premature death of one of the young parents.  

This is why your kid's insurance is important to you:  parents (you) will feel obligated to provide financial help to your son/daughter who is now a single parent.  As a widow/widower they are not likely to have the time and savings to raise a family in the way everyone expected before the spouse's death.  Term life insurance will help relieve the financial stress of such an unfortunate event. In our work as financial advisors we've learned too often that well-intentioned and intelligent parents just haven't helped their kids realize the importance of having life insurance. So, have the talk. These tips may help:

  1. Start with priorities.  Protecting a lifetime of future earnings should be one of the most important.

  2. Talk cost. Term insurance is a relative bargain and is "purchased" with one's age and health. Most twenty-somethings possess both. (Explore insurance now!  Good deals, or even access to any life insurance, may vaporize if a health event arises.) 

We use the website www.term4sale.com to get a good idea of the cost of life insurance. No personal information is required to generate a real-time quote in seconds.  Easy.

David Sylvester