What Percentage of Baby Boomers Do Not Have Life Insurance

Life insurance should be a part of everyone's financial plan. Whether yous are a young millennial starting your career and family, or a baby boomer making plans for retirement and taking intendance of your legacy, life insurance offers peace of heed and protection for your loved ones.

But not every generation has the aforementioned priorities when it comes to purchasing life insurance, and at that place is a pregnant gap between the need for life insurance and the rates of coverage. In this web log post, we'll have a deep dive into LIMRA's 2018 Insurance Barometer Report and investigate the barriers that affect purchasing habits around life insurance for the infant boomer (1946-1964), Gen Ten (1965-1980), and millennial (1981-1998) populations.

Barrier ane: Not enough information

While every generation reports some level of confusion effectually what kind of life insurance coverage they should become, whether or non they would qualify for coverage, and how to access the services of a life insurance professional, millennials are specially susceptible to these barriers to purchasing policies.

According to the study, a full 58% of millennials exercise non know what type or how much life insurance coverage they should purchase. This is compared to 39% of Gen Xers and 29% of baby boomers, respectively.

For the millennial generation, there are several options to cull from when it comes to life insurance. Term life policies are platonic for the millennial consumer because the premiums are predictable and are very affordable. As the name suggests, the policies are typically offered in terms and are available for 10-, 20-, or 30-yr periods, but there are some carriers that also event other level term periods.

Thirty eight percent of millennials also believe that they would non qualify for coverage, while 19% of Gen Xers and 18% of baby boomers share this business concern. Forty three percent of millennials too report never having been approached by a financial professional person about life insurance (compared to 19% of Gen Xers and 12% of baby boomers).

These numbers bespeak that millennials are lacking the necessary information and guidance that they demand to make an informed conclusion about purchasing life insurance. If you're a millennial and you need guidance to make an informed decision about purchasing life insurance, do your research online, speak to friends and family, and then, achieve out to a financial professional who can answer your questions, provide further answers and so walk you through the acquisition process.

Barrier 2: Misconceptions about who needs life insurance

One of the biggest misconceptions about life insurance is that it'southward just a suitable solution for someone that may get out behind a spouse and/or children after they pass away. While life insurance is typically something that people beginning to seriously retrieve virtually when they get married or become parents, single people can likewise reap the benefits of having a policy.

The younger you are, the more you can do good from lower premiums. Statistically speaking, young people are further away from decease. As such, insurance companies typically consider younger individuals a lower chance and in turn, the premiums are lower than those individuals closer to the expected mortality historic period (i.e. older). Likewise, if you opt for a whole life insurance policy, you lot'll have the opportunity to lock in a reduced life insurance rate and keep it over time also as build up cash value which you lot may access in the future.

Related Reading: Millennials: Why Purchasing Disability and Life Insurance Is a Smart Motion

Barrier iii: Too expensive

Baby boomers are retiring and making plans for their legacy, while many millennials are more concerned nearly paying back student loans and making plans for ownership their beginning domicile. Priorities around savings goals and living expenses vary widely across the generational dissever.

Of all the generations, baby boomers have the lowest bulwark to purchasing life insurance. Gen Xers tend to focus their financial priorities on debt management, so actress money that they have which might otherwise go to life insurance is spent on paying downwardly credit cards and other debts. According to the study, millennials are more probable than older generations to prioritize savings, college debt, and vacations over purchasing life insurance.

With all the other fiscal burdens on their minds, many millennials feel like life insurance is likewise expensive for them to comfortably afford. In truth, many of the average millennial's discretionary expenses really cost more than a standard term life policy for a good for you individual. On average, a healthy, 30-year-old male can become a 20-twelvemonth, $250,000 term life policy for approximately $160 a year, or about $thirteen a month.

Regardless of whether yous're a millennial, Gen Xer, or baby boomer, the fact remains that death is inevitable. That poses a good reason to ensure that your dependents—whether real at present or a future consideration—are taken care of with a life insurance policy that you started years before, when it was inexpensive.

Joan Cleveland

Joan Cleveland, CLU, ChFC, REBC leads SWBC Life Insurance Company as President and CEO. With more than xxx years of experience in the life insurance industry. She holds her Amanuensis licenses for Life, Accident, Health Insurance, and has multiple FINRA securities Licenses. Joan is a frequent industry speaker and media spokesperson. She is a member of the Board of Directors of the American Bankers Insurance Clan, and co-chair for their Regime Relations Committee. In addition she is chair of LIMRA'due south Strategic Marketing Issues Committee.

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Source: https://blog.swbc.com/personalhub/life-insurance-across-the-generational-divide

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