Life insurance with grown up children
[social_share]One reason why people get life insurance is that they have children who they want to be sure will be looked after if they should die, or become seriously disabled. There is often the issue of whether the life insurance is actually suitable when someone has grown up and the need is less for life insurance. However there are a number of reasons why there should still be life insurance if there are grown up children.
The main reason is that there may still be some financial support that is being given. This may not be as obvious as it is when there are growing children, but there may be some financial support at the beginning of a child’s career, when grandchildren come along or after a divorce. However in these circumstances there may be some other areas to consider.
Firstly there should be an honest look at whether that financial support is totally necessary or whether it is to support a standard of living that the parent’s think that their children should enjoy. So if it is to support school fees, then there would be a disruption in the grand child’s education but if it is to simply pay for good holidays then this will be missed but it is not a necessity of life.
The other thing to consider is whether the property left in the will can be of any help in these circumstances. If the estate will cover the necessities then there is no need for life insurance for this purpose.
Another point about life insurance will be with guaranteeing loans, particularly home loans and business loans that are made to help the children. These loans are often made with a parent acting as guarantor. In these circumstances then life insurance may be necessary, although as the parent goes into retirement then there should be a careful examination as to whether the guarantee is absolutely necessary.
Funeral expenses are another reason for life insurance even when there are no close dependents. Funeral insurance will pay out on the costs of the funeral. This will take quite a weight off the mind of many of the family who can react badly when grief is mixed with some financial stress, or even the guilt at not providing the best type of funeral.
Although all these needs may mean that life insurance is a good idea, then it may be a good idea to reduce the life insurance.
