Supplemental insurance: What Gen Z and young Millennials want from financial institutions
As financial institutions look to engage Gen Z and Millennials about life and supplemental insurance, they’re finding these generations require a different strategy than previous ones. Younger generations want financial partners who simplify complex topics and deliver value. In addition, they prefer digital tools, peer advice, and personal research over initially receiving information from financial institutions.
Securian Financial learned this and more after surveying nearly 300 Gen Z and young Millennial consumers on their perceptions of life and supplemental insurance, including critical illness, accident, and vision insurance. We found there is a lack of knowledge and lack of trust for those looking to make purchases.
Personalize the need
Most who don’t have supplemental insurance said they didn’t know enough about the offerings. Some said they thought supplemental insurance was only available through employers; others didn’t know where they could find it. Nearly 40% said they don’t need anything provided outside of life insurance offered by their employer. And more than a third said supplemental insurance was only for older people or those with families.
Financial institutions have an opportunity to answer the question, “Why do I need this?” Respondents told us that in order to convince them about the importance of this coverage, they need to understand how it benefits them based on their personal situation, like income, age, family size, health conditions, etc. They want tools to help them compare the pros and cons of different offerings side by side. Many also said they want affordable options, with no hidden fees, and a clear explanation of what is covered.
Address misconceptions
Many young adults view their employer’s insurance as adequate — until it’s not. Our survey revealed that one-third believe their medical insurance covers all their needs, and one in five don’t think they need life insurance until they’re older.
This highlights an education gap. Financial institutions can fill this void by offering plain-language content—blog posts, FAQs, videos—that explain what insurance does (and doesn’t) cover, and why coverage now matters, even for singles without dependents.
Be the trusted expert
Younger consumers lean heavily on friends and family — even more than online influencers — for insurance advice. More than 40% of young respondents say they’d be more confident in their insurance decisions if they had access to real-life examples of people like them or one-on-one time with an advisor.
Financial institutions already have the infrastructure to create this kind of connection. Hosting workshops, sharing real-life member testimonials, and creating advisor relationships that feel approachable and trustworthy.
Message to new generations
To reach Gen Z and young Millennials, financial institutions must:
- Offer personalized, flexible plans that adjust with members’ life stages and incomes.
- Simplify insurance education with relatable, jargon-free tools and advice.
- Leverage trust by positioning insurance as a core need rather than an upsell.
These generations aren’t ignoring insurance — they’re navigating it differently. By meeting them where they are and delivering value in ways that feel familiar and authentic, financial institutions can become not just a place for checking and savings, but a true ally for life’s “what ifs.”
Your trusted partner
Securian Financial offers a wide range of supplemental health coverage options to help protect against life’s uncertainties. Learn how we can help you with the solutions your customers are looking to provide for the next generation.
