Why Life Insurance is a “Must Have” for Generation X and Y
Life Insurance has been the financial salvation for numerous families for centuries, since it first started as a localized “risk pool” using the law of large numbers. Over time it grew to serve numerous purposes as an estate preservation tool or as collateral for a business loan for example. Forward to 2015 and we need this product more than ever.
When roughly 82 million of the 320 million Americans known as the Baby-Boomer Generation (born between 1946 and 1964) began to retire, demanding more affordable health care and better government funded assistance, we had to take a step back and ask, “Who will pay for that?” If these financial benefits happen for them, Generations X and Y will be the ones paying for it. Generation X which has the smallest population of the three of roughly 47 million Americans (born between 1965 and 1981), are not having the luxuries that most Boomers do. What this means is that, the Boomer’s are the largest spending generation in all of human history, not just in their sheer size, but also in their lifestyle. Many inherited decent sums of money from parents who learned frugality during the World Wars, and saved money rather than spent it. Many Boomers accumulated reasonably strong retirement plans through strong returns in the market during the 80’s and 90’s. Many had generous cash value life insurance contracts that would assist with supplemental retirement income streams.
So what about Generation’s X and Y? What is left for them? Not much! Current returns are poor at best compared to the 80’s and early 90’s. Their parents don’t save very well, so what inheritance will they have to assist with the survival of their families. Generation Y (born between 1982 and 1997) are struggling just to find jobs even with college degrees. They are a rather large population of roughly 71 million Americans. Many Boomers continue to work in their retirement years withholding jobs from upcoming Generation Y (Echo Boomers or Millennium Boomers) that need them to survive and start their own families.
With a country trillions of dollars in debt (yes, the United States), money presses working around the clock producing already inflated dollars, and China knocking on our door looking to cash in all the US treasury notes they have, we are facing a looming disaster among disasters. But just as the “saving grace” for many during the Great Depression, cash value life insurance (whole life in particular) stands as a beacon of hope for an economy in major trouble. Instead of waiting for the stock market to solve all our problems, let’s look to “Guarantees” in cash value life insurance contracts. Look into 770 accounts and the ability to over-fund a life insurance policy.
Create your own bank. Just as those during the Great Depression where able to survive because they could borrow money from themselves out of their personal life insurance contracts, you too as a Generation X, Y, and even Z can look for hope in a cash value life insurance product.
About the author: Kyle McDonald holds FIC, FICF, FSCP® & CLTC designations. His viewpoint on life insurance is simple, “Anyone with a family must have life insurance. In the end, life insurance is for others you care about, not you.” He is ready to help you and your family get the best option available. Contact Kyle today at 1-800-651-1953 or KMcDonald@Pivot.com.