If you have grown kids, you might wonder what retirement will be like by the time they're your age. Your retirement is probably supported by income from:
- a pension
- Social Security checks
- distributions from a 401(k) or IRA
But there's no guarantee those things will be available for future generations. In 20, 30, or 40 years, will there even be such a thing as retirement?
Wages aren't rising with inflation, so your kids and grandkids are probably contributing less to their 401(k)s than you did. It's almost certain they won't have a pension. And with the crazy ups and downs of the stock market, accumulated wealth can vanish in an instant...only to grow back again and vanish again and grow again. You get the idea.
Insurers are responding to these needs with new products designed with the modern family's needs in mind:
- providing a way for families to share life insurance costs
- designing products that help secure the younger generation's retirement needs without damaging the financial standing of the older generation
- providing multiple payment options to make sure each generation can contribute in a way that works for them
Shared Dollar Life Insurance
Like a traditional life insurance policy, a shared dollar policy can cover you, with the death benefit going to your children. But instead of being your responsibility to pay for, a shared dollar policy splits that responsibility between you and your children. After all, they're the ones who will receive the death benefit. For many parents and grandparents, it only makes sense to ask the younger generation to help contribute.
For many, shared dollar policies work as a teaching tool. You already know all about the value of hard work and money saved. But the younger generation doesn't always see it your way. They often see a credit card as a tool instead of a last resort. Asking them to help with life insurance payments teaches them financial responsibility and introduces them to the idea of retirement planning. Plus, there's a big incentive in the future death benefit they'll receive.
There are plenty of ways you can split the payment between generations. Here are just a few:
- Split all payments 50/50
- You pay for 10 years, the kids pay for the next 10 years
- You pay a decreasing percentage of the premium each year
Families know that life happens in a heartbeat. Take the time to talk about life insurance now, and let's get your protection in place so you can spend time thinking about family vacations, new arrivals, shared adventures, and all the amazing things your family can accomplish together.