ST. PAUL, Minn.--(BUSINESS WIRE)--A new Securian Financial study reveals that Gen Z and younger millennials recognize the importance of life and supplemental health insurance but still harbor key misconceptions that prevent many of them from purchasing it.

With Gen Z and millennials now representing more than 40 percent of the U.S. population¹, the study highlights an important opportunity for financial institutions to better connect with these younger consumers and help them protect their financial futures.

“Life insurance and supplemental health insurance provide the foundation for long-term financial confidence,” said Matt Bauler, Securian Financial vice president of Affinity Solutions. “Our research shows that younger generations want to be financially responsible and value protection—but they’re looking for education, flexibility and authenticity from financial institutions they trust.”

Key findings

Securian Financial’s July 2025 survey, “Insurance Needs and Views of Younger Generations,” of nearly 300 Gen Z (ages 22–28) and younger millennials (ages 29–32), revealed that:

• Almost two-thirds Gen Z and younger millennials recognize the value of life insurance, yet about 20 percent believe they don’t need it until they are older.
• More than 30 percent think insurance is too expensive, not realizing that premiums are often lower when purchased at a younger age.
• Almost half (48 percent) said they don’t know enough about life or supplemental health insurance to make confident purchasing decisions.
  
• 44 percent prefer learning about insurance through relatable, real-life examples—underscoring the importance of storytelling in education and outreach.

Lessons for financial institutions

Securian Financial’s research outlines four key strategies to help financial institutions meet the evolving needs of younger generations:

1. Address the age-need disconnect. Show why early protection matters and use relatable stories that demonstrate the benefits of insurance at any life stage.
2. Tailor to life stages. Customize communication and products around milestones such as renting a first apartment, buying a home or starting a family.
3. Build confidence through education. Offer clear, easy-to-use tools to help younger customers compare options and make informed coverage decisions.
4. Emphasize affordability. Clarify costs and dispel myths—studies show younger adults often overestimate the price of life insurance by 10-12 times.²

Empowering financial wellness for a new generation

The study reinforces that today’s younger consumers are motivated by values of flexibility, authenticity and security. They view prosperity not just as income, but as the ability to live a balanced and fulfilling life. Financial institutions that focus on education, empathy and transparency can earn their trust and loyalty over time.