Baby Boomers. They gave us rock-n-roll, Woodstock and the anti-war movement. They created the market for children’s products with the Mouseketeers and Barbie dolls. And they changed the landscape of the workplace with millions of women entering the workforce.
Baby Boomers are no longer the largest generation – that honor has passed to Millennials – but they still have impressive numbers. According to Pew Research Center, U.S. Census Bureau data shows that there were 71.6 million Boomers between the ages of 55 and 73 in 2019.
In 2021, Baby Boomers are between the ages of 57 and 75. This means that many have reached retirement age, but many others are still working. They need that income, too. The generation is facing a retirement crisis. According to the 20th Annual Transamerica Retirement Survey of Workers, working Baby Boomers have saved an average of $144,000 for retirement – a figure that many experts fear won’t be nearly enough.
A Disability Could Make the Crisis Worse
Boomers who are behind on retirement savings need to keep working as long as possible. The COVID-19 pandemic, along with the subsequent layoffs and furloughs, has made that difficult. A disability could make it impossible.
According to the Disability Statistics Annual Report, U.S. disability rates are increasing as the population ages. However, many people with disabilities are experienced by people who are still considered to be working aged. In fact, more than half of the U.S. population with disabilities is between ages 18 and 64.
As workers age, they become more vulnerable to many types of disabilities, including arthritis, cancer, and heart disease. Disabilities can force some people into an early retirement – even if they don’t have enough saved yet.
The Solution Is Clear
The message to every broker should be clear: Offer disability insurance quotes.
If you’ve never presented disability insurance quotes, now is a good time to jump into the game. Trends in the marketplace are showing new opportunities, and developments within the DI industry are creating better support mechanisms for getting these sales.
And when it comes to selling disability insurance to younger Baby Boomers, there’s no time to wait. Securing individual disability insurance becomes harder once a client turns 60 or develops a health condition. However, once a client has a policy, coverage and benefits can last until age 65.
Clients who are worried about retirement savings may also be interested in a policy with a retirement security rider. And because medical bills can add up quickly – even with health insurance – don’t forget to offer critical illness coverage.
For Baby Boomers who are already retired, it’s too late to think about disability insurance coverage. Don’t waste any time offering coverage to Boomers, Generation Xers, and Millennials who need coverage now.
For more information on working with Boomers, visit this page on Retirement Plan Disability Insurance.