• Britannia
  • Financial protection for families
  • Financial protection for wage & salary earners

Help your 20-something kids help themselves

Should you secure insurance for your ‘young adult’ kids? And what about setting up KiwiSaver for them, or having a will in place? 

If you have children in their 20s who are taking their first steps into the outside world but haven’t flown the nest yet, you may have pondered these age-old questions before. And if you haven’t, there are reasons to consider them. Check out the quick tips below for some of the key steps you can take to protect your kids’ future today.

Be their guide to financial independence

Remember when you were their age? You probably felt bulletproof, your mind was open to whatever could come. That’s the beauty of it: being 20 is a time of transition, adjustment and change – a journey of self-awareness. Your kids are growing and establishing their goals, understanding who they are, what they can do and who they’d like to be.

Being financially savvy and thinking about life’s everyday risks is not something your children will learn at school. But as they build their financial independence, you can be their guide and mentor.

First stop: health insurance

Including insurance in your checklist is a smart way to maximise your support while also keeping costs down.

Health insurance can be a good starting point, for a simple reason: the earlier your kids get their cover, the cheaper their premiums will be.

Packages for people in their 20s literally cost few bucks a month, and you can calibrate this amount further by adding an excess. Plus, starting early minimises the chances of having pre-existing conditions, which are usually not covered.

Life insurance, trauma and income protection

Of course, the ‘worst case scenarios’ are not easy to think about, but if your kids can be added to your policy, securing additional cover can be worth it.

Once again, you’d be surprised at how cheap insurance can be at that age, and you can even lock in the initial price by getting life insurance or income protection on a level premium. Want to learn more about this option? Please don’t hesitate to contact us. Taking out a life insurance / income protection policy for your kids now will land them a low rate for life.

The benefits of KiwiSaver

On a different – but no less important – note, let’s talk about KiwiSaver. Compound interest is one of the benefits of setting up KiwiSaver for your kids. Additionally, after three years they will already be able to put all or part of their savings towards a first home – up to $5,000 if it’s an existing building, $10,000 if it’s a brand-new house. With this in mind, you can also encourage them to get the most out of their account by keeping their fund performance top-of-mind.

If you’d like to explore KiwiSaver for your kids, let us know and we’ll put you in touch with an expert who can talk through your specific queries.

Consider setting up a will

Last, but not least, helping your kids plan for their future is important, and having a will in place is part of it. It will ensure that people and things that matter most to you are taken care of, knowing that nothing is left to chance.

Again, we work with specialists who assist our clients with their Estate Planning needs.

Insurance, KiwiSaver, a will – whatever your choice, supporting your kids’ financial independence is the best way to set them on their path, and prepare them for the day they’ll spread their wings and fly off. Get in touch if you’d like to discuss how you can help your children help themselves.

Let’s stay in touch

Click here to subscribe to our newsletter »

 

An Adviser Disclosure Statement is available free and upon request.