Many baby boomers are approaching the age when they might consider not renewing their term life insurance policy. However, a report says that could be a mistake, because life insurance of any kind can be a vital safety net for a generation of Americans increasingly burdened with a wealth of responsibilities.
Baby boomers find themselves as part of a unique "sandwich" generation, said the Insurance Information Institute. Even as they enter retirement age, many find themselves financially responsible for grown children or even their parents, meaning many people rely on them as dependents. If they were to pass away, those dependents would be without a primary financial provider, said the source, underscoring the need for a proper life insurance policy.
"Baby boomers have reinvented every life stage they have experienced and are likely to approach retirement and aging differently than previous generations," said Jeanne M. Salvatore, senior vice president of public affairs for the I.I.I. "Given this generation's understandable concerns about their personal finances, insurance can provide an important financial safety net when it is purchased properly."
Term life insurance could cover the essentials as an income replacement, while permanent life insurance could also kick in as a savings component or a way to donate to charity, experts say.