Baby Boomers and the New American Dream

"Individuality is freedom lived." — John Dos Passos

Financial planners work with a wide range of age groups, each one with different characteristics and needs. While advisors often learn what works best for certain life stages, it's clear the boomer generation is especially unique. Boomers know this, too.

Each boomer thinks they are unique unto themselves — and they're right. They are extremely different from their parents' generation, where it was protocol to work at the same employer for the length of their career. Very rarely did their parents get divorced or remarry after the death of a spouse. Their parents embodied the classic "American Dream," and today, baby boomers are redefining their goals to create a new dream.

Boomers have strayed from a linear path of life by holding a variety of jobs, starting their own businesses and retiring earlier. They have assumed the responsibility of caring for not only their elderly parents, but their adult children and maybe even grandchildren. They have a strong work ethic and have strived to be great at everything they do, so they have a very distinct goal upon retirement: make their hard work worth it.

Leaving a legacy

Advisors working with boomers will quickly notice their clients are very concerned about leaving a financial legacy or at least guaranteeing they will not leave behind a monetary mess for the next generation. Using life insurance as a financial tool can be an effective way to help them reach their goal.

When used properly, life insurance can address the unique desires of this generation, allowing them to take care of several generations' finances upon their passing. It can ensure boomers are leaving a legacy by creating capital, which can either amount to a sum to be left to a beneficiary or resolve outstanding debts upon the client's death. Boomers are fiercely independent, and the capital built by life insurance will allow them to take care of all of their financial needs without burdening their children with additional bills.

It is crucial for advisors to remember you cannot use a cookie-cutter approach to planning for boomers. While life insurance might be the solution for one boomer, it may not be right for another.

Additionally, advisors need to have specialized service for this exceptional generation. Diligent follow-up and close, personal relationships are particularly valuable to boomers. Make it a point to truly understand your boomer clients and therefore, truly understand how life insurance can work for them. With the right relationship and the right products, advisors can help make their clients' lifetimes of hard work truly worth the effort not just for them, but for generations to come.

For more on boomers, see:

The Life Insurance Glass is More Than Half Full

For Boomers, It's a New Era of 'Work Till You Drop'

Got an Extra $160,000? You May Need It