Why Life Insurers Must Redesign Products for the Under 40 Market

The World Life Insurance Report 2026 from Capgemini highlights a strategic inflection point for the life insurance industry: engaging the under-40 demographic is no longer optional—it’s imperative. Traditional life insurance models, focused on end-of-life protection, are failing to resonate with younger consumers who are delaying milestones like marriage and parenthood and instead seek financial tools that offer real-time, tangible value.

Despite 68% of under-40 consumers acknowledging life insurance as essential, adoption remains low. This gap is largely due to outdated value propositions and friction-laden customer journeys. With financial behaviors shifting toward investments that offer flexibility, control, and immediate benefits, insurers must pivot from selling insurance for death to delivering insurance for living. Living benefits—such as wellness rewards, critical illness coverage, and financial flexibility—are key differentiators that can transform life insurance into a dynamic asset throughout a customer’s life.

Capgemini’s report urges insurers to act on three fronts: develop modular, flexible products that include living benefits; adopt hybrid digital-human advisory models; and embed life insurance within broader financial and wellness ecosystems. Technology integration, personalized communication, and proactive use of data are essential to capturing and retaining this digitally native generation.

First movers that embrace these strategies stand to reclaim market share from both traditional and non-traditional competitors. With the world’s largest intergenerational wealth transfer already underway, engaging under-40s today means securing long-term relevance and growth in an increasingly competitive financial services landscape.