Baby Boomers and Millennials. We hear about these two age groups so often that we often forget there is another generation stuck in the middle: Generation X.

Defined as the population born between 1965 and 1979, Gen X has many nicknames that speak to the fact that not only is it smaller than Baby Boomers and Millennials, but in some ways, it’s sometimes forgotten. These include “the sandwich generation,” “the middle child generation” — and for pop culture aficionados — “the Jan Brady generation.” ^{1, 2}

As we’ll document below, perhaps no other cohort is saddled with more financial responsibilities than Gen X. And because of this, they sometimes trail Baby Boomers and Millennials in terms of purchase power. Here is one example: while more than a third of Millennials and 23 percent of Baby Boomers said they planned to purchase it, only 21 percent of Gen Xers planned to buy travel insurance.^3,4 They also contend with the issue of time; namely, they need more of it to vet important purchases. And today, they’re simply swamped with all that life is throwing at them.

But that is just a snapshot of today. Tomorrow, those same Gen Xers may have paid off the mortgage, their kids’ tuition payments (or their own loans), as well as piles of credit card debt. And time will then be on their side. In other words, while Gen X may not be as bought into travel insurance as their peers’ generations at this moment, they pose perhaps the greatest potential for choosing the peace of mind and financial recourse that comes with purchasing travel insurance down the road.

Generation X and Budget Considerations for Travel Insurance

Not only is Generation X stuck in the middle, but when it comes to their finances, they may be feeling the pinch.

With an average nonmortgage debt of $23,000, which is up 15% from 2014 according to Allianz Global Assistance research, it makes sense that half of Gen Xers feel overwhelmed by financial burdens.⁵ In fact, only 35% feel confident that they have enough money to live the life that they want to live.⁶

If you take into consideration where those in their late 30s to mid-50s are in life, the costs that Gen Xers are ponying up soon add up. They might be paying for child care, or college for their kids (and perhaps their own college loans), family vacations, multiple cars and a mortgage.

Consequently, Gen Xers have more difficulty adding another expense to their vacation budgets and trip costs. But travel insurance isn’t just another expense; it’s precisely designed to provide reimbursement and other financial relief in the event that insured travelers’ plans go awry. Let’s say, for example, that a family of five must cancel their summer beach vacation for a covered reason. And that included a weekly oceanfront condo rental —a nonrefundable fee they paid for up front. With a benefit provided through travel insurance, they may be able to reload their vacation plans at a later time without fully dipping back in their pocket.

But that’s a lot of information to share with someone who’s short on time.

The Shopping Habits of Generation X

Gen Xers aren’t prone to make rushed or impulsive purchases, far from it. They’re conservative. In fact, they’re naturally skeptical and prefer to soak in as much information as possible about a potential purchase before pulling the trigger.

When it comes to travel insurance, this can cut both ways.

On one hand, if a traveler from the sandwich generation encounters an offer to purchase travel insurance as they near the conclusion of their purchase path on an airfare or hotel booking website, they’re less likely to make a last-minute decision to opt in. But on the other hand, if they do their research and see the value in travel insurance, they can be more likely to make the purchase.⁷

So sometimes travel insurance is less a question of available budget and more a question of available time, which begs the question…

Does Gen X Have Time for Travel Insurance?

Buying travel insurance isn’t like buying a pack of gum or drive-thru meal. It requires a little more thought to see exactly how it conveys value and peace of mind for consumers. In fact, providers such as Allianz Global Assistance encourage potential purchasers to do their research in identifying the best policy for their budget and travel needs.

But time is a fleeting resource for the middle child generation. They’re often not yet retired, and more likely than not operating at the peak of their careers. Most Gen Xers are married (64 percent) and another 15 percent have grandkids younger than 18 years old.⁵

Managing a marriage partner and a career, and supporting kids and grandkids, takes time. Consequently, there is far less time available in the average day for Gen Xers to vet purchases such as travel insurance.

To repeat our theme, as they move through this juncture of their life, they’re more than likely freeing up time as they move forward. The kids may leave to make it on their own, it might be time to downsize the home, and work-life balance starts tipping a bit more toward the latter. That’s more time to research potential purchase such as travel insurance, and better yet, more time to travel.

Generation X is a hard-working, multi-tasking bunch. They may not be the most frequent purchasers of travel insurance, at least compared to Baby Boomers and Millennials. But as the smoke caused by all their responsibilities begins to clear, they’re poised to possess time and budget in spades. As an upshot, they may just become the biggest fans of travel insurance of all their fellow generations.

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