Gen Z skipping insurance?

Mashrukh Khan: Gen Z adults show the lowest life insurance ownership rates among generations, with over 60% not having insurance globally and with only 36-42% owning coverage in the USA, according to 2025 LIMRA and Life Happens studies.

In contrast, older groups are doing better; Baby boomers at 57%, Gen X at 55% and Millennial at 50% ownership rates. Globally, Gen Z ownership remains low in regions like South and Southeast Asia due to low overall insurance penetration, while higher rates appear in markets like Candada (Around 73% overall, with strong youth participation) and parts of Europe such as France (High voluntary coverage).

Key reasons for disinterest include severe cost overestimation as young adults believe premiums are 7-12 times higher than they actually are, often confusing life insurance with more expensive automobile policies.

Delayed traditional milestones like marriage, parenthood and home ownership have also reduced perceived urgency. Lack of knowledge, confusion from jargon and complex processes confusion among Gen Z adults and they consider getting insurance as a challenge. Other competing financial pressures such as student debt, high living costs, inflation and economic instability is also discouraging them to apply for insurance. Furthermore, many view insurance as unnecessary until they are older and give it low priority.

Despite barriers, many in Gen Z acknowledge the value as 49% feel they need insurance coverage and 68% of under-40s see life insurance as essential for financial health. In order to raise interest among the Gen Z adults, insurers should shift to digital platforms with user-friendly apps. Insurers can also leverage social media to reach 84% of Gen Z who use it for financial information. They can also offer personalised, flexible policies with immediate wellness or living benefits. Providing affordable, transparent options and simplifying jargon can also build trust.

Experts say that adapting to Gen Z’s preferences could close the growing protection gap and secure future market growth.