These days, millions of older workers are still feeling the financial pinch as a result of the recent national recession, and as such, many are now reconsidering their budgets as a means of boosting their retirement savings. However, often, those decisions to cut corners start with luxuries, and life insurance may be increasingly viewed as being such an unnecessary expense.
Though experts generally believe that for people in their 50s and 60s, life insurance is not only affordable, but often necessary, many baby boomers who are within a decade or so of their retirement ages may now be eschewing those policies as a means of bolstering their finances according to a report from Bankrate.com. This is a result of many older workers dipping into their retirement funds as a means of making ends meet, or otherwise using their credit cards to pay bills.
Whatever the reason for their financial difficulties, many boomers are cutting out their life insurance plans and instead contributing the money they would have paid into those policies to other financial obligations, the report said. However, they may do so without realizing that life insurance remains affordable to them even as they grow older and draw closer to retirement.
As such, it may be even more vital for life insurance companies to think about the ways in which they market to consumers of all ages. Though many Americans may buy life insurance policies when they're in their 20s and 30s - around the time many begin getting married and having children - they might simply no longer see the value that these plans provide them, or else they allow their term to expire and do not consider re-upping, the report said. This is exacerbated by the sticker shock that many older customers face.
Older workers may also simply no longer consider life insurance to be vital because they have fewer people to provide for in the event of an untimely death. Therefore, insurers will need to do more to connect with these people who might be considering eliminating their plans, to show them the inherent value that policies can provide even into a person's 50s and 60s.