Gen Z and Millennials Recognize Life Insurance’s Importance but Lag in Purchasing Policies

A recent study by Life Happens, in collaboration with LIMRA, revealed a noticeable gap in life insurance coverage among Gen Z and Millennials, despite their awareness of its benefits. The 2023 Insurance Barometer Study showed that while 52% of all adults across generations have life insurance, the numbers are lower for younger generations. Specifically, only about 40% of Gen Z and 48% of Millennials are covered by life insurance policies.

The research highlighted that this lack of coverage isn’t due to a lack of understanding about the importance of life insurance. Approximately 49% of Gen Z and 47% of Millennials recognize the need for or value in enhancing their life insurance coverage. However, misconceptions about the cost of life insurance seem to be a significant barrier. For instance, a substantial number of Gen Z (55%) and Millennials (38%) overestimate the cost of life insurance, believing it to be at least $1,000 per year, whereas the actual cost for a healthy thirty-year-old is closer to $200 annually.

This gap in understanding suggests a need for insurance companies to better educate these younger demographics, particularly through social media channels, which are their primary sources of information. By clarifying the affordability and value of life insurance, insurers might effectively bridge the gap and encourage more policy purchases among Gen Z and Millennial age groups.