Articles

The needs of mature adults tend to emphasis on their successors as well as their elders. These generally include:

• Providing funds for higher specialised studies for their children.
• Assisting their children with payments on their new homes.
• Loaning or granting money by way of gifts to other needy family members or relatives.
• Ensuring health care and attention for their aged and dependent parents.
• Planning for a dependent who might have specific needs.
• Guaranteeing loans and financial obligations for their children.
• Building a savings fund to provide additional income during retirement.

We've said this earlier and we'll say it again to anyone who is ready to listen and accept the truth. The only way that an individual can provide for subsequent expenditure is to accumulate sufficient cash and resources ahead in time. As it is, most major expenses are out of bounds with current income standards. Paying day-to-day bills is tough enough for most of us already.

Marriage and Education Costs:

The cost of marriage and higher education for children forms a major expense during the mature adult's life cycle. The costs of living increase year after year. And to meet these rising costs requires sacrifice and considerable effort on the part of most families.

Families associate the ritual of marriage as a prestige issue. Owing to social trends and pressure, every family oversteps its bounds when it comes to budgeting the marriage expenditure.

The cost of higher education is also rising. More and more students are opting to go abroad to seek specialisation in their chosen vocation. Foreign universities are also offering a wide range of specialised courses on Indian soil now. This makes a college education highly desirable. Yet, as the costs go on mounting, it makes planning all the more essential to make the education a reality.

Children's First Home:

Since costs of housing have to be met with a large percentage from our incomes, newly married couples are finding it harder than ever before to pay the minimum down payment or even acquire the necessary resources to qualify for housing finance. Needless to say, these young couples need their parents' help for providing the necessary funds. When a young couple applies for a loan, they should purchase dual-life insurance policies, naming their parents as beneficiaries. If by chance, the couple expires before the housing loan is paid off, the proceeds of the policy can easily suffice in meeting the repayment installments.

In case the couple lives happily ever after, the cash value in the policies can be used to pay off the remainders of the loan after a while. The tax advantages offered are extremely advantageous for the young couple and their parents. Many other financial options are available, but the flexibility offered by life insurance policies is unmatched by any of them.

Research shows that the younger the loan applicant, the lesser are the chances of unfortunate demise.

Gifts and Loans:

Arranging for permanent residential accommodation may be difficult but the expenses of starting a new business, or expanding an existing enterprise or even additional education are just as tricky. Adults in their mature years are usually confronted with financial demands from generations preceding as well as succeeding them. Providing funds for children, elderly parents, or relatives, either as a loan or an outright gift, may create a change in the financial planning considerations.

Caring for Dependent Parents:

Not many people anticipate that as their children mature and gain independence, they might be confronted by new dependents-their own parents. Since these people are responsible for their children as well as their elderly parents, they subsequently get 'sandwiched' between the expenses of both the generations.

The fact is that people are living longer. The longer they live, the more likely are they to be damaged by inflation. Costs of illnesses and maladies coupled with long-term care leave them with no choice but to ask their children for assistance and support.

A family 'sandwiched' between the pressures of two generations is subjected to a lot of emotional and financial strain. Difficulties arise from balancing the needs of parents and shouldering their children's responsibility besides concentrating on personal financial goals. The only solution lies in planning in advance for the risks covered. People who anticipate and prepare for the worst can afford to make choices later on in life.

Long Term Care:

Long term care insurance is yet another major planning consideration. Medical assurance policies are not always adequate. They can never meet the catastrophic costs of a major illness or a chronic disability. Not many people can afford the large expenses of nursing homes with their current income.

If matured adult parents are unable to afford this coverage, it makes sense for their children to share the premium expenditure. This is a sensible precaution to be exercised against any potentially high costs that might occur later. When the time period for future health planning is over, the options available for the elderly are fewer and extremely unattractive.

If a parent's health goes from bad to worse and they become completely dependent on external help, the medical costs may be higher than the income level of the family, regardless of how willing they might be.

Dependents with Special Needs:

Just like elderly parents, children who are physically or mentally handicapped require special consideration and are a source of major and expensive concern. A provision for their needs must be considered and plans made as early as possible. Needless to say, the dependency period never ends with these dependents.

Providing necessary care for dependents having special needs can be extremely strenuous, both emotionally and financially. At times, people who are caring for the disabled sacrifice their own health and financial security at the expense of the other members of the family. The emotional pull generated can create a terse atmosphere within the household.

Parents of a dependent with special needs wish to see that these expenses are taken care of on a long-term and guaranteed basis. With timely and proper planning, such expenses can be met easily regardless of what happens to the provider of support.

Arranging for permanent residential accommodation may be difficult but the expenses of starting a new business, or expanding an existing enterprise or even additional education are just as tricky. Adults in their mature years are usually confronted with financial demands from generations preceding as well as succeeding them. Providing funds for children, elderly parents, or relatives, either as a loan or an outright gift, may create a change in the financial planning considerations.