For many of today’s parents, the Sandwich Generation is more than a life stage—it’s a feeling. Adults in their 30s to 50s who find themselves caring for both aging parents and their own children are part of the Sandwich Generation. Sandwiched caregivers frequently report feeling stretched thin, and many are seeking support in the form of coverage like recuperative care insurance. 

A recent survey* conducted by New York Life Wealth Watch confirms this. More than half of the current Sandwich Generation say they’ve made financial sacrifices, with nearly as many going into debt. To buffer the cost of caretaking, 83 percent of adults are looking into buying more insurance. Top choices are life, long-term care, and other supplemental insurance that covers unexpected healthcare expenses. 

Unsurprisingly, two-thirds of these caregivers** are feeling somewhat to very stressed. While the number of male caregivers in the Sandwich Generation has surpassed female caregivers—at 55 to 45 percent—women still report spending more time caregiving and carrying a bigger emotional burden.* Adding to the burden, the majority of aging adults reaching retirement age aren’t financially prepared.  

How Supplemental Insurance Benefits Sandwiched Caregivers  

With so many caregivers needing assistance, insurance has become an important part of the picture. Recuperative care insurance, used to provide added protection for covered hospital stays, is emerging as a particularly helpful product. 

A person who has recuperative care insurance: 

  • Can receive cash benefits if they’re hospitalized for a covered accident or sickness. 
  • Will be paid recuperation benefits upon release for each day of an eligible hospital visit. 

When someone is hospitalized for a covered accident or illness with recuperative care insurance, they’re essentially getting paid to get better.  

Depending on the policy, a caregiver with recuperative care insurance may receive several hundred dollars a day as an in-hospital benefit. This could potentially add up to several thousand dollars for a week of hospitalization. The payout can cover lost wages and daily expenses. For an aging parent with recuperative care coverage, it’s important to note that benefits reduce with age, usually starting at 65. 

Recuperative care insurance often supplements other insurance and helps fill in gaps in coverage. While a patient might have excellent health insurance covering up to 90 percent of a hospital stay, they could still be left with thousands to pay out-of-pocket. After witnessing the unprecedented number of hospitalizations in the pandemic, more people value preparing for the unexpected. 

Having financial support in place can also alleviate stress, allowing caregivers to focus on their loved ones. 

As more sandwiched caregivers plan to purchase insurance, offering supplemental products can help banks and credit unions improve loyalty and income. When Franklin Madison clients have added recuperative care to their product suite, they’ve seen significant increases in billed premiums compared to financial institutions that don’t offer similar products. 

Without supplemental insurance, consumers in the Sandwich Generation may have a greater risk of overdraft fees and difficulty making loan payments. But with the right supplemental coverage in place, consumers can  use cash benefits  to pay bills and help stay financially stable. 

Wondering how to be a valuable partner to consumers in tough times? Read our report. 

How Else Can Financial Institutions Help the Sandwich Generation? 

Supporting consumers’ financial health supports the health of an institution. Right now, financial health for the Sandwich Generation has never been more important. Caregivers caught in the middle could potentially pay just as much to support their aging parents as they do their kids.** 

In addition to providing insurance products, here are several other ways banks and credit unions can serve sandwiched consumers:  

  • Flexible banking solutions: Provide accounts with low fees, flexible overdraft policies, and convenient digital banking options tailored to busy lifestyles. 
  • Digital tools and apps: Create digital tools and mobile apps that allow consumers to easily track expenses, set savings goals, and manage finances from anywhere. 
  • Specialized loan products: Develop loan products with favorable terms for Sandwich Gen consumers, such as caregiver loans or lines of credit for home modifications. 
  • Family financial planning services: Offer personalized financial planning guidance to help navigate the complexities of managing finances for multiple generations, such as considering joint accounts. 
  • Community partnerships: Partner with caregiver and community organizations to give consumers access to referrals, discounts on services like respite care, and support groups. 
  • Workshops and educational resources: Host workshops on topics like retirement planning, college savings, and eldercare insurance to empower consumers to make informed decisions. 

Many caregivers feeling stretched may not know that resources are out there. This is where their financial institution comes in.  

Banks and credit unions can look at the Sandwich Generation’s stressors as a critical opportunity. Not only do sandwiched caregivers need education on options to improve their financial wellness—most consumers in this category are actively looking for insurance.* 

Along with needing supplemental insurance for aging parents, caregivers also lack adequate coverage for themselves. Nearly half of the Sandwich Generation doesn’t have life insurance.** This indicates a serious lack of financial protection for dependents. 

By providing a diverse range of insurance products, including life, recuperative care, accidental death and dismemberment (AD&D), and a hospital accident plan (HAP), financial institutions can enable Sandwich Generation consumers to safeguard their families’ futures. This proactive approach addresses immediate needs, while also ensuring financial stability across generations. 

Could Your Consumers Use Recuperative Care Insurance? 

Franklin Madison’s approach to smarter insurance marketing can help you deliver products that drive loyalty and increase non-interest income. If you’re not currently offering recuperative care and similar products as part of your financial wellness lineup, let’s have a conversation.