Being sandwiched between Boomers and Millennials, you, as a proud Generation Xer might feel like you are the forgotten generation. Although you may be smaller in numbers than your generational counterparts, that doesn’t mean that you’re not mighty.
Currently making up 30.7% of the Canadian labour force,1 Gen X has above average household incomes—on average over $100,000!2 But, with all that income often comes another burden. Debt. And lots of it!3 Generation X has the highest debt of any other generation and because of it, the majority don’t have much money saved. In fact, one in four Canadian Gen Xers have nothing saved for retiremen So, with all the focus on paying off debt, life insurance is probably not top of mind for you. But that doesn’t mean that it’s not as important as paying down your debt and increasing your savings.
You know what you don’t know
More than ever, Gen Xers are looking for financial help and guidance. In general, you may not be up on all things financial. Are you like most Gen Xers? When it comes to financial planning…
- 41% want help calculating how much money they need to save for retirement
- 38% want help in determining at what age they can afford to retire
- 37% want help on deciding where to invest4
Between your spouse (or ex-spouse), growing children, debts, mortgages, saving for retirement and helping out with aging parents, you, like your fellow Gen Xers, have many reasons to consider life insurance coverage. In fact, 68% of Gen Xers say that they need life insurance coverage and 31% are concerned about their family’s financial state should they die.5 But knowing you need insurance and knowing where to get it, or how much you need, are very different things.
Getting started
Just like for all other major life purchases, your personal network is the first place to turn. Reach out to your friends, peers, parents and colleagues to see if anyone has had a positive experience with a current or past insurance advisor. Even in our digital age, this should be the place to start.
Once you have a few names, a quick internet search will help you find out how active these advisors are online. Ideally, look for a website or blog with articles on financial education, life insurance basics or statistics. Also, look for their social media presence to see if they are sharing these same articles and information across their profiles. You’ll want to work with someone who is knowledgeable and up on current trends, so online is the perfect place to see what they know.
Once you have narrowed it down to one or two, reach out for a meeting. Face-to-face meetings are valuable and offer many benefits, including:
- Fewer distractions so you can really focus on what the advisor is saying
- Having your questions answered immediately
- Ability to gauge sincerity, honesty, knowledge, professionalism and legitimacy of the advisor
Deciding to purchase life insurance is a big decision—no matter what stage of life or generation you’re in. With an experienced financial planner that you can trust and feel comfortable with, you’ll be well on your way to achieving your financial and protection goals.
To learn more, check out this infographic, or get in touch with your advisor.
- Statistics Canada, 2018 Labour Force Characteristics
- US Department of Labor Bureau of Labor Statistics, “Consumer Expenditure Survey: Midyear Update: July 2017-June 2018,” April 26, 2019
- Franklin Templeton Investments Canada’s 2018 Retirement Income Strategies and Expectations (RISE) survey
- https://www.aboutschwab.com/schwab-401k-participant-study-2019
- LIMRA 2019 Insurance Barometer Report
Disclaimer
This article is intended for general information purposes only and should not be considered specific or personal investment, insurance, estate planning, legal or tax advice or a solicitation to purchase insurance. Nor should any medical information provided in this article be considered medical or health advice and should not be considered a substitute for advice from a qualified medical professional. While reasonable efforts have been made to ensure that the contents of this article have been derived from sources believed to be reliable and accurate at the time of publication, ivari does not warrant the accuracy or completeness of the information contained herein.
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Categories
- Life insurance
- Life stages
- Personal finance and saving
- Retirement