Life Insurance to Gen Xers' Rescue

Overall, most parents in or near retirement want their children to have it better than they did, but times have changed. We have transitioned from a society of savers to one of debtors.

This means that many members of my age group, Generation X (ages 39 to 53), are faced with trying to keep their heads above water.

The stats tell the Generation X story:

• Lost nearly 60% of its net worth between 2005 and 2010.

• 40% say they are not confident about having enough money for retirement.

• Will need about 16 times their final salary to retire comfortably.

• 35% don’t expect to receive any Social Security income.

• Cost of raising a child to age 18, $245,000. Four years of college adds $92,000 (public) or $312,000 (private).

• 47% have a parent 65+ and are raising a minor child or supporting a grown child.

Simply put, the pressure is palpable. The dream of having children who are more financially successful than their parents or who will even have the means to take care of their X-Gen parents during their older years may be little more than a dream.

(Related: How to Make Term Life Insurance Do More)

So, how can life insurance come to the rescue? It can’t do everything but it can help, one family at a time and we might call it, “Parents: Donate all or a piece of your insurable interest.”

Many in the older generation are under insured. They have either let their life insurance coverage lapse, purchased just enough for final expenses, or leave a small next egg for a surviving spouse.