Why baby boomers still need this important financial protection tool


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All the generations do money differently. Millennials are budgeting far differently than those in Gen X, for example. But we all have something new to learn and consider when it comes to our money. 

For most baby boomers, they’re past the point of needing life insurance. They have their house paid off, their kids already graduated college and they’re close to (or already in) retirement. They’re just enjoying their golden years now.

But there are times when baby boomers might still need life insurance. For example, they may not have considered funeral costs in their financial planning, which can be several thousand dollars. Or the Great Recession may have set them back a bit and they still need a small safety net. (Take note: These are the states where wages have grown the fastest since the Recession.) Or they have co-signed credit cards or other debts they don’t want their family to deal with. Or they want money to leave to their kids and grandkids. Or maybe they want to be able to cover long-term care expenses.

The point is, life insurance isn’t just a young person’s game. There are plenty of reasons for baby boomers need life insurance, which is why it’s important they shop around for the best solution for them, which could also include a life insurance rider. 

Riders for baby boomers to consider

Riders are additions to life insurance policies – either add-ons for an extra cost, or features built into the policy – that let the policyholder tailor it to their needs. There are a lot of riders to choose from, but there are a couple that might be particularly attractive to baby boomers.

  • Long-term care rider: This rider allows you to use the death benefit early in order to pay for long-term care services like nursing needs.
  • Accelerated death benefit rider: With this rider, if you become terminally ill, you can access the death benefit to pay for medical costs rather than saddling your loved ones with debt.
  • Term conversion rider: If you are lucky enough to qualify for a term life insurance policy but the insurer will only approve a short term, this will turn the policy into a whole life insurance policy, meaning it stays in effect for as long as you pay the premiums. Most term life insurance policies come with a conversion feature built in, but it’s good to be aware of so you know what options you have when the policy term ends.

There are a lot of topics that seem to boil down to millennials – eating avocado toast and these other things millennials get dragged for – but there’s one thing people of every generation have in common: They just might need life insurance, and they need to get it from a company that works for them.

This article originally appeared on Policygenius and was syndicated by MediaFeed.org.

Featured Image Credit: DGLimages.


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