September marks Life Insurance Awareness Month, a timely reminder that while the need for protection is universal, the approach to life insurance looks very different depending on where you are in life.
A 25-year-old starting out in their career, a 45-year-old raising a family, and a 65-year-old preparing for retirement share one thing in common: they all face risks that life insurance can help manage. But the coverage needs, strategies, and benefits shift dramatically by generation.
At AMW Group, we work with individuals, families, and business owners across the spectrum. What we’ve seen consistently is that treating life insurance as “one-size-fits-all” leaves gaps. Instead, thoughtful planning tailored to age, income, and goals creates real security.
Millennials (29–44 years old): Building Foundations
Millennials are in the prime of building careers, families, and financial foundations. At this stage, life insurance is often overlooked. Many think they’re too young to need it, or that employer-provided coverage is enough.
Why it matters now:
- Lower premiums. Buying life insurance when you’re young and healthy locks in lower rates for decades.
- Growing responsibilities. Millennials are often balancing student debt, mortgages, and young children — liabilities that could fall to family members if something happens.
- Employer coverage isn’t enough. Group life insurance typically provides one to two times annual salary; far short of covering long-term needs.
Best fit strategies:
- Term life insurance is often the most affordable choice, providing a high level of protection during the years when income and family responsibilities are growing.
- Starter permanent policies (such as whole life or indexed universal life) can serve as building blocks, offering cash value growth that doubles as a financial resource later.
Generation X (45–60 years old): Protecting Families and Income
Generation X is often called the “sandwich generation”, a generation caring for both children and aging parents while still building wealth for themselves. Their need for life insurance is usually at its peak.
Why it matters now:
- Biggest financial obligations. Mortgages, college tuition, and ongoing living expenses all depend on steady income.
- Business ownership. Many Gen Xers are entrepreneurs or small business owners who need coverage to protect succession plans.
- Parents and children depend on them. Without coverage, multiple generations could feel the financial strain.
Best fit strategies:
- Larger term policies to cover income replacement and debt obligations.
- Permanent insurance with riders (such as long-term care riders) to start preparing for future healthcare costs.
- Business-focused solutions like key person insurance or buy-sell agreements funded by life insurance.
Baby Boomers (61-79 years old): Preserving Wealth and Legacy
For boomers, life insurance often shifts from income protection to legacy planning. Many are approaching or already in retirement, and the focus is on ensuring their assets support both themselves and the next generation.
Why it matters now:
- Estate planning. With the great wealth transfer underway, boomers hold a significant share of assets that need to be protected from erosion through taxes.
- Healthcare costs. Rising long-term care costs can quickly deplete retirement savings.
- Gifting with purpose. Life insurance provides a tax-efficient way to pass wealth to children, grandchildren, or even charities.
Best fit strategies:
- Permanent life insurance policies that ensure a guaranteed death benefit, regardless of lifespan.
- Hybrid policies that combine life insurance with long-term care coverage.
- Trust-owned life insurance for estate planning, shielding heirs from unnecessary taxes and probate challenges.
A Common Thread: Planning Ahead
While the needs differ, the underlying principle is the same across all generations: life insurance works best when it’s proactive, not reactive. Waiting until health declines or until retirement is around the corner limits options and increases costs.
Three takeaways for every generation:
- Start early. The earlier coverage is purchased, the more affordable and flexible it is.
- Review often. Major life events (marriage, children, buying a home, starting a business) should trigger a review of coverage.
- Think beyond the policy. Life insurance is a piece of a bigger financial plan that should integrate with investments, estate planning, and business strategy.
Why 2025 Is the Year to Reevaluate
Economic uncertainty, rising healthcare costs, and the ongoing wealth transfer all make life insurance more relevant than ever in 2025. Each generation faces different risks, but all can benefit from building or updating a plan that reflects today’s realities.
At AMW Group, our mission during Life Insurance Awareness Month is simple: help individuals and businesses protect what they’ve built while preparing for what’s next.
Because no matter your generation, life insurance isn’t just about the future. It’s about peace of mind today.