Life Insurance for Generations X, Y, Z

Planning for All Ages

The Great Wealth Transfer is on the horizon with over $100 trillion expected to be passed from Baby Boomers to Generations X, Y, and Z by 2048.  This multi-year event will prompt a lot of estate planning in its wake with each generation having its own approach towards inheriting wealth and how to structure their financial planning.  With these thoughts in mind, it can be advantageous to get started with financial planning now for the future of these generations.

Generation X is generally considered to be those who were born from 1965-1980.  Generation Y (Millennials) is generally 1981-1996.  Generation Z (Zoomers) is generally 1997-2012.  These three generations include people ranging in age from 13 to 60.  Estate planning is not a one-size-fits-all solution, so each generation’s planning should be structured for their unique stage in life and altered accordingly throughout their lifetime.

It’s no secret that life insurance can enhance financial planning during each stage of life for any generation.  Both life insurance and long-term care coverage are cheaper the younger and healthier you are.  Generation Z can benefit from the foresight of locking in premiums based on their age and good health.  While Generation Y is building a family, life insurance can enhance a financial portfolio with living benefits and an estate plan with death benefits.  Business owners can access living and death benefits of life insurance to retain employees or enhance succession planning.  Empty nesters in Generation X can enhance their gifting exclusions through Generation Skipping Trusts, using discounted dollars by way of premium payments to leave large death benefits to their grandchildren.

As each generation moves to a new chapter in life, so does the estate plan, and the life insurance portfolio should follow suit.  As assets are gifted to the next generation and the estate tax exemption continues to flux, life insurance that was implemented to pay estate taxes can be repurposed to fit the needs of the family.  There are several strategies to explore when life insurance is no longer needed.  For example, policies with cash value can be accessed for retirement income or other living benefits.  Alternatively, a life insurance policy can be gifted to charity for grand endeavors, such as scholarships, that contribute to legacy building for the individual and name recognition after death.

Contact us with any questions or opportunities to help you or your clients achieve identified goals. This is what we enjoy doing for only a select number of families, businesses, and charitable institutions each year, and we look forward to hearing from you.