According to the new insurance law, parents are able to keep their children on their insurance policy to age 26, even if they are attending school, married, or living away from home. The question or concern many parents face is, how can they best prepare their adult children for the insurance market?
This might be the ideal solution for parents who are financially responsible for caring for their adult children, if they are experiencing some type of disability. However, it might not be an ideal solution for parents with adult children who are healthy, and otherwise able to engage in physical activities.
The road from childhood to adulthood is not easy. If previous preparation was not implemented at an early age, the road to preparing adult children for the insurance market can be both challenging and overwhelming. Adult children with no financial responsibilities or liabilities, might find it difficult to gain access or participate in life skill requirements.
There are many reasons why parents should teach their children how to be financially responsible at a young age, before entering adulthood.
Experts list several tips on how parents can prepare their adult children for the insurance market. Although, these tips might not work in the beginning; however, persistence and patience is the key to getting the desired results.
Insist on your child finding part- time or full- time employment to help pay for their insurance. You should not bear the entire financial responsibility of providing insurance coverage once your child reaches the age limit requirement. Obligate your child to pay a percentage of the premium, until the child is able to pay it all.
Stress Importance of Insurance
For children who are reluctant to obtain insurance, explain the importance of having health insurance. For children who are ill, and require medical attention often, getting this point across could be easier than you think. Offer scenarios, as to what would happen if you did not have health coverage, and could you afford to pay for your medical care, medication and other fees without insurance. These facts are eye openers, and they will help you to get your point across.
Make Children Accountable
Parents who are nearing retirement age might not have the financial ability to provide continual insurance coverage for their adult children. Helping children to remain financially stable, and helping them to take on their own responsibility shall be every parent’s main objective. Parents can best help their adult children prepare for life’s challenges by allowing them to assume some financial responsibility of their own. Even if it is something as simple as paying half of a cell phone bills, or a third of the automobile insurance.
The objective is to get children used to the idea of paying their own bills sometimes cutting the apron strings are hard to do, but if children are to grow up to become mature adults, they must learn the steps at an early age. While some parents start their children off with a small savings account, and teach them how to save their money. When the child wants to buy something special, the child is required to use his or her own money. This is perhaps the easiest way to help prepare children for the world they are about to encounter. Teaching them that the aspects of owning life insurance, guarantees financial stability for their own family, and that acquiring health insurance keeps them from exhausting their savings account or going into debt in the event of an emergency situation. Parents are their child’s first teacher in life. It is never too late to leave a great impression.