Millennials and Gen-Z’ers have now reached an age where financial stressors are at the forefront of life. Accordingly, the 2023 Insurance Barometer Study conducted by LIMRA and Life Happens revealed that interest in purchasing life insurance among these demographics is at an all-time high, with 44% of Gen Z adults and 50% of Millennials expressing intent to purchase life insurance this year.
The study also showed that these younger generations are less likely to have coverage and more likely to live with a life insurance coverage gap.
“Younger generations experienced a life-altering event just as they were starting their careers, getting married and having children,” said Alison Salka, Ph.D., senior vice president and head of LIMRA research. “The realization of how precarious life can be may have made them more aware of the need to protect their loved ones.”
The study shows that a quarter of Gen-Z and Millennials were hesitant about life insurance due to the fact of not knowing how much or what kind of insurance to get which stops them from getting it all together. 37% of Gen Z and 27% of Millennials say they “haven’t gotten around to it.”
The lack of knowledge surrounding the next generation is the greatest obstacle and prevents young parents from getting coverage. In the study, less than one in three Gen Z and millennial parents feel acquainted with life insurance.
“Educating young adults is key because no one is going to buy what they don’t understand. Year after year, people significantly overestimate the cost of life insurance while citing expense as the top reason for not getting coverage,” said Maggie Leyes, chief creative officer of the educational nonprofit Life Happens and coauthor of the study. “It’s also important how we engage and educate them. Younger adults are increasingly looking to buy life insurance online and are more likely to use social media platforms ― particularly Instagram, Twitter and Tik Tok ― to educate themselves. Our goal should always be to meet them where they are.”
Half of the older Gen-Z’ers are 18-26 years old and 19 million of those young adults are ready for life insurance. The Millennials who are 27-42 are fully into their careers and starting families. The study took a look at life insurance ownership among different age groups and found that half of all adults (52%) own life insurance, with 40% of Gen Z adults and 48% of Millennials currently owning it.
As the next generation continues to grow older, it’s important to have more in-depth conversations about the importance of life insurance and prepping for the future.
About Kenyatta: Clark Atlanta University and Medill School alumna Kenyatta Victoria is the Girls United writer covering everything from news, pop culture, lifestyle, and investigative stories. When not reporting, she’s diving deep into her curated playlists or binging her favorite comfort shows.
