As we continue to shine a spotlight on the importance of protecting your family and legacy for Life Insurance Awareness Month, let’s take a closer look at Generation X (Gen X) and their unique financial needs when it comes to life insurance.
Roughly defined as people born between 1965 and 1980, Gen X has now aged into what’s sometimes called the “sandwich generation” because many are caught in between caring for their aging parents and supporting their own children. This generation, which is smaller than the Baby Boomers, Millennials and Gen Z, faces a multitude of financial challenges during these years, but one of the most pressing is how to take care of themselves on top of all this added responsibility.
Many may not know that life insurance with living benefits can be the key to solving many of these financial issues. Part of the goal of Life Insurance Awareness Month is spreading the word about all the innovative features a life insurance policy can have, many of which can provide Gen X the peace of mind they are looking for.
The Gen X Dilemma: Balancing Financial Priorities
Recent statistics paint a clear picture of the challenges Gen X individuals are facing when it comes to their finances, and how many are still unaware that they can turn to life insurance to help:
- 54% of Gen X report owning life insurance coverage: While a majority of Gen X does have life insurance, there’s still room for improvement in ensuring they have the right coverage to meet their unique needs.
- At 44%, Gen X has the highest level of concern per generation for paying for long-term care services if they become unable to take care of themselves: Gen X is acutely aware of the potential need for long-term care as they age, likely because many have started taking care of their aging parents. This financial stress makes it even more crucial for Gen X to explore life insurance options that include living benefits.
- Retirement, health considerations and emergency savings are the top financial concerns for Gen X: These concerns highlight the need for financial protection and peace of mind that comes with comprehensive life insurance coverage. Many Gen X individuals are juggling various financial responsibilities, from paying for their children’s education to finding care for their parents. This balancing act can lead to life insurance taking a back seat when it should be part of the solution.
- 31% of Gen X don’t own life insurance because of these other financial priorities: Life insurance has come a long way since most of Gen X were young adults. Many of them may not know that certain policies are able to cover their financial concerns with features like living benefits and indexed cash value options.
- 44% of Gen X say they don’t have life insurance because it’s too expensive: It’s true that life insurance premiums can vary based on several factors, but the perception that it’s unaffordable often discourages Gen X from considering this essential financial tool.
- 25% of Gen X don’t own life insurance because they are unsure of how much or what type of coverage to get: The complexity of life insurance options can be overwhelming. However, seeking guidance from a financial advisor can help Gen X individuals make informed decisions about their coverage, including finding a policy that covers all of their financial concerns.
At 44%, Gen X have the highest level of concern per generation for paying for long-term care services if they become unable to take care of themselves.
The Solution is Living Benefits
Life insurance policies with living benefits offer a practical solution to many of Gen X’s concerns. Contrary to the perception that life insurance is too expensive, many policies with living benefits are affordable, and premiums can be tailored to fit individual budgets. With the help of a knowledgeable financial advisor, Gen X individuals can determine the right amount and type of coverage that aligns with their unique financial goals and concerns.
The irony is that life insurance is often put on the back burner when it could be the solution if it were a higher financial priority. The ability to use a portion of the death benefit for long-term care expenses can provide Gen X with the security they need as they age. Living benefits riders allow policyholders to access a portion of their death benefit while they’re still alive if they experience a qualifying critical illness, chronic illness or disability. These features can alleviate financial burdens during challenging times, providing Gen X with a great solution for many of their problems.
54% of Gen X report owning life insurance coverage.
As we celebrate Life Insurance Awareness Month, it’s crucial to recognize that life insurance can be the key to protecting Gen X. This generation faces a lot of financial challenges, and a well-structured life insurance policy can provide the peace of mind and financial security they need. Don’t let misconceptions about affordability or uncertainty about coverage options hold you back. Consult with a financial advisor to explore the possibilities and make informed decisions that will safeguard your future and the future of your loved ones.
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