With so much news about Millennials these days, those of you who are part of Generation X may be looking for news and information directed toward you, and may be asking questions like, “What kind of insurance do I need?” and “How much life insurance should I have?”
Well, for those who fit between the Baby Boomers and the Millennials: This article is for you.
According to Investopedia, Generation X is the generation whose “earnings power and savings were compromised first by the dotcom bust, and second by the financial crisis of 2008 and the Great Recession,” and are currently “approaching the middle of their working careers and potential peak-earning years.”1 These are just a couple of the financial factors to consider when you’re planning your insurance situation and the financial future of your family.
Life insurance, of course, is something you buy typically to protect your loved ones financially in the event of your death. After all, it’s not for you, it’s for them.
But life insurance is something that many Gen-Xers are shying away from. According to a 2015 Insurance Barometer Study released by LIMRA and non-profit Life Happens, “cost is the reason most Americans give for not owning life insurance,” and Generation X overestimates the cost of life insurance by 119 percent.2 The study also showed that 23 percent of Generation X prioritized recreational activities over buying some or more life insurance, and LIMRA noted, “what is clear is that while Americans understand the importance of life insurance, they continue to prioritize other short-term expenditures, often failing to understand how affordable life insurance can be.”
Owning adequate life insurance is something that should be seen as essential, especially for a generation whose financial situation isn’t as strong as its members would like it to be. According to ThinkAdvisor, Gen-Xers “will need about 16 times their final salary to retire comfortably” and that 40 percent of those Gen-Xers claim “they are not confident about having enough money for retirement.” 3 ThinkAdvisor notes that life insurance can help, making the suggestion, “Parents: Donate all or a piece of your insurable interest,” and “[w]hile the parents retain ownership of the policy, their children can leverage its untapped value, pay the premiums, and create a lasting legacy that helps with their financial security in retirement.” 3
Because no one can predict his or her future, life insurance remains a must for virtually everyone. Make sure you’re sufficiently insured and that your family will be financially sound in the event of your death. If you need help navigating what kind of life insurance to buy – whole or term, for example – and how much to buy, a financial advisor or a licensed insurance agent can assist you.
Investopedia, Generation X – Gen X, 2019
ThinkAdvisor, Life Insurance to Gen Xers’ Rescue, 2018
Categories: Insurance and Life Insurance