Most of Generation X is in the unfortunate position of supporting both their parents and their kids, and their untimely passing could have a massive impact on their family’s future. But despite this, a surprisingly large percentage of Gen X’ers do not have whole or term life insurance.
If you’re Gen X, read on to find out why you need to get insured, and how insurance can help you provide for the most important people in your life.
Should Gen X’ers Buy Life Insurance Policies?
Yes! It will help them plan for many future financial expenses. Gen X’ers tend to support both their parents and children, which is a major financial responsibility. Their death would be a heavy financial burden, but life insurance could secure their household’s future.
Despite this, a 2020 LIMRA insurance barometer study showed that life insurance policy ownership dropped significantly from a peak of 63% in 2011 to just 54% in 2020. While ownership of life insurance increased in millennials, it dropped significantly for the older generations of consumers. This drop is alarming because it leaves many Generation X members and their families economically vulnerable.
Here are some reasons why, if you're from Gen X, life insurance coverage could be a secure financial investment:
You Can Prepare For Your Kids' College Expenses
With the cost of higher education rising every year, you’ll need to secure your kids’ education fund in case you pass away. Your life insurance coverage could act as an emergency tuition fund if you die before your children go to college – or in the middle of their schooling.
Life Insurance Policies Can Cover Your Home Mortgage
Still paying for a home? Consider taking out a term life insurance policy with coverage that is at least equivalent to the term and cost of the mortgage. This ensures that, even in the event of your death, your spouse and children can pay off the balance and remain in your home.
Your Death Benefit Can Support Your Family Members
A Pew Research article revealed that Gen X is increasingly the "sandwich" generation, taking care of both their aging parents and young children. If you have several people depending on your income, getting life coverage is a way to protect their standard of living after your death.
You Can Use A Policy's Cash Value In Emergencies
With cash value life insurance, a part of your premiums will be invested and will earn interest. You can later withdraw or borrow against your policy when you need it, allowing you to access cash at lower interest rates compared to banks, credit cards, or traditional lenders.
Different Generations, Different Life Insurance Purposes
Even if you’re not a member of Gen X, you should consider getting insured. Whether you’re entering retirement or struggling with student loans, life insurance can secure your financial future.
Here’s more information on each gen and how life policies can specifically help them.
This is the generation born from 1946 to 1964. The average baby boomer has already retired or is planning to retire, but they may still have loved ones depending on their income. Life insurance could help baby boomers live comfortably after retirement, or help them pay for the costs of medical treatment. Baby boomers who don’t have their own policy should reconsider their insurance options, allowing them to prepare for retirement and the loss of a steady salary.
Gen X’ers are those who were born from 1960 to 1985. It's the demographic between older "baby boomers" and younger millennials. Most adults in the workforce belong to Generation X, and many of them have a spouse or family members dependent on their income. This demographic can use life insurance to provide for their dependents, in the event of their untimely passing.
Millennials are those who were born from 1982 to 2000. While older generations are at the peak of their careers or about to retire, the average millennial only entered the workforce during the Great Recession of 2008. Because of this, many people in this generation are still planning for a family or paying off a student loan debt.
Because of economic instability, more young people than ever are getting life insurance. Getting insurance early allows millennials to enjoy lower premium rates and reap larger dividends on life policies with investment plans.
Many Gen X people tend to overestimate the cost of life insurance without comparing life insurers' policies or premium rates. Because of this, they may not feel that it's worth it to get a life policy.
Before making a decision, it’s wise to consider the different benefits and the future well-being of your family. With the help of a financial expert, you can find a policy that provides for your loved ones and suits your budget.
If you have more questions about coverage, talk to Wesley Insurance, LLC! We can help you search for the right life insurance plan and get you started on securing your economic future.