Delaware News

Boomerang Kids Create Insurance Issues

Insurance Commissioner | News | Date Posted: Thursday, September 29, 2016



Commissioner Stewart helps Baby Boomers and Gen Xers navigate empty nest reversal

 DOVER, DE — Nearly half of adults in their 40s and 50s have a parent age 65 or older and are either raising a young child or financially supporting an adult child.1 These baby boomers and members of Generation X are feeling the pressure of empty nest reversal from boomerangs – adult children returning home to live – and live-in elders – seniors trading their current home for a loved one’s spare bedroom. In addition to negotiating cooking and cleaning responsibilities, Delaware Insurance Commissioner Karen Weldin Stewart encourages families to make sure everyone understands how a change in address might affect insurance needs.

“American households are experiencing a dramatic shift. Whether it’s aging parents moving in with their grown children or young adults moving back in with mom and dad — today’s households come in all shapes and sizes,” said Stewart. “As family dynamics evolve, the National Association of Insurance Commissioners and I urge consumers to understand the insurance implications of their unique living arrangements.”

Aging Relatives 

For seniors, moving in with an adult child can be uncomfortable. Before the first box is packed, parent and child need to talk about finances, including insurance.

Consider the following questions:

  • Are you current on health, auto and life insurance premium payments?
  • Are you covered by Medicare?
  • Is long-term care insurance something we should look into?
  • What are your end-of-life wishes?

This level of detail will help both parties decide what changes, if any, need to be made to existing coverage. Most importantly, seek to make your loved one feel cared about, not cared for. 

Boomerang Kids 

For the first time in more than 130 years, adults 18-34 years old are more likely to be living with their parents than in any other scenario — including living with a spouse or partner, other family or friends, or alone.2 Experts say hosting an adult child can cost between $8,000 and $18,000 per year.3

Before welcoming an adult child back home, set clear expectations:

  • How will health insurance be covered? Who will pay for what?
  • Will we combine auto policies? How will driving records affect premiums?
  • What belongings are you bringing? Will expensive items such as electronics or sporting equipment increase homeowner’s insurance premiums?

To avoid misunderstandings, the NAIC developed the Welcome Home contract. In addition to outlining basic rules of adult co-habitation, the document places under signature key insurance-related agreements between adult child and parent.

For insurance tips to help modern households of all shapes and sizes including baby boomers, same-sex couples, single parents, millennials and more, visit InsureUonline.org. Delawareans interested in state-specific insurance information can contact the Department of Insurance at 1-800-282-8611 or visit http://www.delawareinsurance.gov/.

 

Sources

1 Pew Research Center

2 Pew Research Center

3 The Wall Street Journal

 

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Boomerang Kids Create Insurance Issues

Insurance Commissioner | News | Date Posted: Thursday, September 29, 2016



Commissioner Stewart helps Baby Boomers and Gen Xers navigate empty nest reversal

 DOVER, DE — Nearly half of adults in their 40s and 50s have a parent age 65 or older and are either raising a young child or financially supporting an adult child.1 These baby boomers and members of Generation X are feeling the pressure of empty nest reversal from boomerangs – adult children returning home to live – and live-in elders – seniors trading their current home for a loved one’s spare bedroom. In addition to negotiating cooking and cleaning responsibilities, Delaware Insurance Commissioner Karen Weldin Stewart encourages families to make sure everyone understands how a change in address might affect insurance needs.

“American households are experiencing a dramatic shift. Whether it’s aging parents moving in with their grown children or young adults moving back in with mom and dad — today’s households come in all shapes and sizes,” said Stewart. “As family dynamics evolve, the National Association of Insurance Commissioners and I urge consumers to understand the insurance implications of their unique living arrangements.”

Aging Relatives 

For seniors, moving in with an adult child can be uncomfortable. Before the first box is packed, parent and child need to talk about finances, including insurance.

Consider the following questions:

  • Are you current on health, auto and life insurance premium payments?
  • Are you covered by Medicare?
  • Is long-term care insurance something we should look into?
  • What are your end-of-life wishes?

This level of detail will help both parties decide what changes, if any, need to be made to existing coverage. Most importantly, seek to make your loved one feel cared about, not cared for. 

Boomerang Kids 

For the first time in more than 130 years, adults 18-34 years old are more likely to be living with their parents than in any other scenario — including living with a spouse or partner, other family or friends, or alone.2 Experts say hosting an adult child can cost between $8,000 and $18,000 per year.3

Before welcoming an adult child back home, set clear expectations:

  • How will health insurance be covered? Who will pay for what?
  • Will we combine auto policies? How will driving records affect premiums?
  • What belongings are you bringing? Will expensive items such as electronics or sporting equipment increase homeowner’s insurance premiums?

To avoid misunderstandings, the NAIC developed the Welcome Home contract. In addition to outlining basic rules of adult co-habitation, the document places under signature key insurance-related agreements between adult child and parent.

For insurance tips to help modern households of all shapes and sizes including baby boomers, same-sex couples, single parents, millennials and more, visit InsureUonline.org. Delawareans interested in state-specific insurance information can contact the Department of Insurance at 1-800-282-8611 or visit http://www.delawareinsurance.gov/.

 

Sources

1 Pew Research Center

2 Pew Research Center

3 The Wall Street Journal

 

#  #  #

 

image_printPrint

Related Topics:  , , , , , , ,


Graphic that represents delaware news on a mobile phone

Keep up to date by receiving a daily digest email, around noon, of current news release posts from state agencies on news.delaware.gov.

Here you can subscribe to future news updates.