I’m part of the sandwich generation. You know, when you have children that you are still financially responsible for and aging parents that are requiring more care. The kids really aren’t theproblem. I planned and saved for their education so paying for college does not hurt (too much) financially. Plus, I know it will only last for four years or so.
The problem lies with my parents. When my parents retired at my dad’s age 67, they were told by a financial planner that if they had $100,000 in the bank with their social security and pension, that was all they needed. My mom is now age 87 and dad is 92. There has been a lot that has happened with the economy and inflation that have eaten away at their retirement fund of $100,000 over the last 25 years. Now that my folks are in a retirement community, their “nest egg” will be gone in about two and a half years, provided they live on only their fixed expenses.
My mom has several health conditions that may not have her with us much longer. However, my 92 year old father is in darn good shape and could be around longer than his nest egg will make it, which means that my brother and I will have to supplement his income. This is something we didn’t plan for.
Now my parents are also from the generation that doesn’t think you need any more life insurance once your kids are grown and out on their own. I know… shame on me for not getting with them and making sure they had some life insurance inforce into their later years. After all, I am in the life insurance business. We certainty know that it is important to protect those left behind, even in your retirement years, to supplement retirement income in the case of high inflation, low interest rates, and a decrease in social security.
So here is another good reason to own life insurance over the age of 85. What if you live too long and out live your retirement income? What if your children have to step in and pay for your care? What if your children have to use their retirement income to supplement yours because you happen to live beyond your normal life expectancy?
Honestly, I don’t feel bad about having to help out my parents. After all, I know how much they gave to me. But if they had life insurance in place, I wouldn’t be worried about spending my retirement income on them!
Let us help you offer alternatives to your clients so they don’t have this same challenge. Tell them why life insurance is important after age 85. The sooner they start the better.