The Sandwich Generation

The Sandwich Generation

With an aging population and a generation of young adults struggling to achieve financial independence, the burdens and responsibilities of middle-aged Americans are increasing.

Nearly half of adults in their 40s and 50s have a parent age 65 – and about one-in-seven middle-aged adults are providing financial support to both an aging parent and a child.

Balancing these needs with the ever-increasing importance to save for their own retirement creates a challenging scenario.

Consider the following statistics in which the sandwich generation is facing:
  • The national median cost for home health care in 2017 was $49,000 and the median cost of a private room nursing home is upwards of $97,000.  The startling fact is that only 36% of families are saving for it.
  • According to the College Board, the average cost of tuition and fees for the 2017–2018 school year was $34,740 at private colleges, $9,970 for state residents at public colleges, and $25,620 for out-of-state residents attending public universities.
  • The average savings of a 50-year-old is a mere $43,000.

An Indexed Universal Life (IUL) insurance policy may provide the protection and financial flexibility to meet many needs of this generation.

An IUL insurance policy can…
  • Provide a tax-advantaged death benefit for either the kids’ education or the parents’ care down the road, should the insured pass away prematurely.
  • Build cash value that will grow tax-deferred and is accessible when the kids go to college, if the parents need care, or to supplement retirement savings.
  • Provide tax advantaged funds available during both the insured’s life and at time of death.
Consider a healthy 40-year-old male who purchases an indexed universal life policy, funding it with $500 a month
  • Age 55 – $95,995 in cash value and $378,217 death benefit
  • Age 65 – $269,299 in cash value and $494,434 death benefit
  • Age 75 – $610,495 in cash value and $886,195 death benefit

When planning for your clients’ financial future it is important to have an option that provides flexibility and can adapt to the changing needs of your clients while at the same time providing protection for their loved ones.

We are here to help – contact us for more details!

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