By Phyllis Falotico
Posted on September 16, 2025
Traditional one-size-fits-all approaches to employee benefits face a fundamental challenge: today’s workforce spans four generations with different financial priorities and concerns. Our Q2 Workforce Financial Stability Score data and report* underscore how broad the spectrum of needs has become – from older Gen Z workers feeling confident about their financial future to younger Baby Boomers watching economic pressures threaten their retirement plans.
This generational divide presents a unique opportunity to examine how MassMutual’s Group Whole Life insurance (GWL) serves diverse workforce needs — and why it may be one of the most versatile benefits in your toolkit.
Group whole life across the generations
While working Americans may be familiar with the death benefit associated with group whole life insurance, the living benefits that can provide additional financial well-being often get overlooked. Life Insurance Awareness Month provides a perfect opportunity to examine how different generations evaluate GWL and what drives their enrollment decisions.
- Gen Z (born 1997 – 2010)
MassMutual’s Workforce Financial Stability Score (WFSS), which measures working Americans’ perceptions of financial well-being, averaged 56.9 in Q2 2025. But for older members of Gen Z who have become part of the workforce, their WFSS is 61.8. That’s the highest among the generational groups, and is reflected in the confidence older Gen Z employees have in managing their day-to-day finances and their optimism about meeting their long-term retirement goals. Their focus is squarely on financial fundamentals, including credit scores, student loans, and 401(k) balances.
GWL fits with Gen Z’s foundation-building mindset as part of their financial and retirement plans. The coverage’s guarantees are a good fit for their objectives, including the ability to lock in guaranteed level premiums, guaranteed death benefit, and guaranteed cash value. - Millennials (born 1981 – 1996)
Millennials are focused on career building, often juggling young families, educational debt, and first real estate purchases. While their WFSS of 60.5 is up year-over-year, the research reveals the generation’s unease about their financial futures, including increased job security concerns (+7 points since June 2024).
The protection and preparation aspects of GWL are likely to resonate with most Millennials. Having coverage that they can keep if they change jobs, which also extends into retirement and may offer riders for their spouse and dependent children, aligns with their financial priorities. At the same time, GWL can provide certificate owners with a financial asset that accumulates cash value that grows tax-deferred over time. - Gen X (born 1965 – 1980)
Generation X often finds themselves in a financial pressure cooker as they care for both children and aging parents – all while preparing for approaching retirement. The generation’s WFSS at 52.8 tells us Gen X feels less confident in their ability to withstand unexpected expenses. They express rising concerns related to stock market stability (+6 points) and unemployment (+4 points) compared to June 2024.
As a result, GWL’s practical features are likely to appeal to Gen X. The product’s guaranteed death benefit and guaranteed cash value that increases regardless of financial market performance tie into the generation’s dual need for family protection and long-term financial security. In addition, MassMutual’s built-in Chronic Care Benefit1 can also be relevant for Gen X. In addition to providing access to a portion of the coverage’s death benefit when the insured has a qualifying chronic illness, this living benefit is available at no added premium cost. - Boomers (born 1946 – 1964)
Younger Boomers are feeling financial stress, with economic pressures raising concerns about retirement security. Their WFSS of 52.3 dropped across all six dimensions that comprise the score, including declines in confidence about their financial plans and reaching their retirement goals. Younger Boomers’ concerns about the stock market (+10 pts), retirement savings impact (+10 pts), and housing market stability/affordability (+9 pts) have increased significantly since June 2024.
GWL’s guaranteed death benefit, guaranteed cash value, and portability feature2 offer crucial financial tools as Boomers prepare to retire. In addition, our Chronic Care Benefit1 can help reduce the financial stress of a chronic illness. Once a certificate holder is certified as having a qualifying chronic illness, the benefit is paid in a lump sum without any plan of care requirements, so the employee is able to use the money any way they choose. Plus, employees only pay for the benefit if it’s exercised, with the fee deducted from their benefit amount, so there are no additional out-of-pocket costs.
While financial well-being concerns vary from generation to generation, the protection and security offered by Group Whole Life insurance can help bridge the differences. By understanding generational needs and how GWL fits, you position yourself as a strategic partner that can help your client address their diverse workforce challenges.
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* The MassMutual Workforce Financial Stability Score measures the changing attitudes and financial outlook of working Americans. Commissioned by MassMutual, the research began in June 2022 and is conducted online, monthly, among a nationally representative sample of 1,000 U.S. middle-market employees. For purposes of this research, MassMutual defines working Americans and middle-market employees between ages 22 and 67, working at firms with at least 25 benefit-eligible employees, with a household income of $40,000 to less than $150,000, and assets less than $300,000.
1 The Chronic Care Benefit is not intended to be a qualified long-term care insurance contract under section 7702B of the Internal Revenue Code. The Chronic Care Benefit is neither long term care, nursing- home, or home care insurance and is not conditioned upon the receipt of long-term care or medical services. Having a chronic illness means the insured: is permanently unable to perform, without substantial assistance, at least two Activities of Daily Living (eating, toileting, transferring, bathing, dressing, and continence) (in NY, for a period of 90 consecutive days) due to loss of functional capacity; or requires Substantial Supervision to protect the insured from threats to health or safety due to permanent Severe Cognitive Impairment. Additionally, in North Carolina, and Washington, generally, Chronic Illness is any medical condition that requires continuous confinement in an Eligible Institution, where the Insured is expected to remain there for the rest of their life. In New York, generally, the Insured requires continuous care for the remainder of the Insured’s life in an Eligible Facility or at home.
There is a fee to exercise the Chronic Care Benefit. The fee is a percentage of the Eligible Amount for the Chronic Care Benefit and is determined based on the Insured’s age at the time the benefit is approved to be exercised: 18% for ages 45 and above; 27% for ages 44-35; 36% for under age 35. In certain situs states the term “Fee” is replaced with “Actuarial Discount” or “Reduction.” The certificate’s premium payments will be based on the reduced amount of insurance at the current rate. Fees are taken from the Chronic Care Benefit payment.
Except in Washington and North Carolina, the acceleration of the death benefit is intended to receive favorable tax treatment under §101(g) of the Internal Revenue Code. Accessing other similar benefits may cause the per diem limit to be exceeded. The insured must be chronically ill as defined in 26 USC 7702B. Receipt of accelerated death benefits may be taxable. For certificates issued in Washington or North Carolina, the Chronic Care Benefit defines a chronic illness in accordance with state insurance requirements, and may be taxable, as the state prescribed definition differs from the federal tax law definition. Certificate owners should seek advice from a tax advisor prior to requesting a benefit payment.
Accelerating the payment of the death benefit may affect eligibility for public assistance programs, including MEDICAID and SUPPLEMENTAL SECURITY INCOME (“SSI”). Insureds should contact the Medicaid Unit of the local Department of Public Welfare and the Social Security Administration Office for more information. In NY, the Chronic Care Benefit is not a health insurance certificate providing long-term care insurance subject to the minimum requirements of New York Law, does not qualify for the New York State Long Term Care Partnership Program and is not a Medicare supplement certificate.
The payment of the Chronic Care Benefit will reduce the certificate’s death benefit, any cash value and any loan values. The certificate’s premium payments will then be based on the reduced amount of insurance and the rates in effect for the policy.
Clients should carefully read the accelerated death benefit disclosure provided at application. Restrictions and limitations will apply.
For more detailed information about how the Chronic Care Benefit works, please ask your benefit representative for a MassMutual Chronic Care Benefit brochure approved for use in your state.
2 Premiums must continue to be paid out of pocket for coverage to continue under the terms of the certificate.
The information provided is not written or intended as specific tax or legal advice. MassMutual, its subsidiaries, employees and representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel.
State variations will apply. The product and/or certain features are not available in all states. This material is not for use in California. The Chronic Care Benefit is not available in Massachusetts.
Group Whole Life Insurance (GPWL), (policy/certificate forms MM-GPWL-2014 and MM-GCWL-2014, and MM-GPWL-2014 (NC) and MM-GCWL-2014 (NC) in North Carolina), is level-premium, participating permanent life insurance. The GPWL policy and GCWL certificates are issued by Massachusetts Mutual Life Insurance Company, Springfield, MA 01111-0001.