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Insurance Changes When the Nest Empties

en-3The moving van is pulling out of the driveway and the house is quieter than it has been in years. It’s a day of mixed emotions for parents. They’ve been looking forward to this moment and dreading it all at the same time. They raised their children to be self-sufficient and able to move out of their home, whether it’s to their own place or off to college.

As boomers grow older, we eventually become empty nesters. We find our once-bustling households filled with baseball games, loud music and arguments over who gets the car keys, suddenly as quiet as a library.

Find the Right Insurance for Your Empty Nest and Save. Search for Lower Rates Now is the time to do something that we haven’t had a chance to do since…probably when we were the ones moving out of our parent’s place. Think about ourselves! We can take that vacation we never had when the kids were at home, or turn that empty bedroom into a study. We can even run off to Tahiti and become fire dancers.

Well…probably not that but the study sounds like a good idea. The question is, how to get this accomplished and what are the insurance questions that we should be asking? Are there insurance changes when the nest empties?

1 – Life Insurance: Sometimes empty nesters believe that they don’t need life insurance anymore. We asked Chad Viminitz, financial planner and author of “Money Assassins” if this is the case. We found out that life insurance presents different options for an empty nester. Term life insurance becomes prohibitively expensive at about 60 years of age.

“For boomers with no debt issues, we advise them to look at permanent life insurance. That can either be a whole-life type of insurance or a universal life; those are the two types of permanent coverage.”

2 – Auto Insurance: When your nest empties you might want to consider paring some of the coverage that you had when you had young drivers in the house. You are in the safest driving category of drivers if you are between 55 and 65 years old. If your car is three or more years old consider a high collision deductible or pulling collision coverage off entirely.

3 – Homeowner’s Insurance: Chances are Junior took a fair amount of your personal property net worth when he moved out. Stereo equipment, gaming systems, and clothing that you have been insuring for years are no longer in play. Do a fresh inventory on your coverage, be it homeowner’s or renter’s coverage. Only pay for what you need.

Speaking of homeownership, this might be the time to consider jettisoning the mantle of owner and renting instead. The Hawaii Dept. of Consumer Affairs recently did a study and determined,

“The cost of homeowner’s insurance and other costs, such as maintaining your home, are becoming too high for recent empty nesters. Renter’s Insurance is typically less expensive than homeowner’s, as you are insuring your possessions and not the dwelling itself. Recently, some insurers in Florida and the Gulf States have raised homeowner’s premiums by 20-30% following hurricanes Katrina and Rita, hitting seniors particularly hard.”