Life insurance for empty-nesters

Monday, 23 January 2012 05:13

Life insurance for empty-nesters

Many parents look forward to reclaiming their own lives and having a little more money to spend on themselves when the kids leave home and head off to university. No longer must the fridge be stocked to feed a small army, nor travel restricted to the pricey school holidays. With the money you’ll save, perhaps you could treat yourself to a cruise? Yet the hope of more financial freedom doesn’t always become a reality for many empty nesters.

The cost of sending a child to university will hit £9,000 for some students by the end of this year. And that’s just for tuition fees. Cardiff University puts undergraduate living expenses at just under £6,500 for the current academic year. As anyone with a child already in further education knows, student loans only go so far and chances are that the Bank of Mum and Dad will be asked to help.

So if your children are about to fly the nest, now is a perfect time to take a close look at your household income and outgoings to work out how much you could afford to help them and what cover you have in place for all eventualities. 

It is sensible to consider what would happen to your family if the worst were to happen and you weren’t around anymore. Ask yourself – if your children were still studying, would they be able to continue their studies and meet their living costs? Or if they had graduated, would they need help to get onto that slippery first rung of the property ladder? Last year, first-time buyers ¬needed a deposit of £27,032 on average, according to the Halifax.

Life can take a turn for the worse overnight and it’s always better to make plans for difficult times when things are going well and you consider the ‘what ifs’ coldly and calmly. Life insurance is one way you can preserve your family’s financial security and give you peace of mind. It can provide a lump sum to help protect your family financially when you're gone, help pay for your funeral expenses and help pay off any debts you might have – depending on your circumstances and the type of policy you choose.

And it doesn’t have to be a heavy financial undertaking – some policies can cost as little £6 a month or just 20p a day. Worryingly, however, a survey by insurance company L&G found that only 54 per cent of respondents had life cover in place. Whatever your personal situation, it makes sense to think ahead.

Issued by Sainsbury’s Finance

Sainsbury’s Finance is a trading name of Sainsbury’s Bank plc. All information correct at time of publication, but may be subject to change. Any views or opinions expressed in this article are the responsibility of the author and do not necessarily reflect the views of any part of the Sainsbury’s Group of companies.

• Tags:
• associate article