Insurance needs and views of younger generations
How Gen Z and younger millennials perceive life and supplemental insurances
With Gen Z and millennials making up more than 40 percent of the U.S. population,1 it makes sense that today’s economy is shifting toward younger consumers. And it’s a generational shift like no other.
These younger age groups are the first true digital natives. They’ve never known a world without smartphones, social media and instant access to information. As a result, their approach to money, finances and insurance looks very different from prior generations. With financial tools just a tap away, they expect convenience, transparency and choice from every provider they engage with, including insurers.
To better understand their perspectives, Securian Financial conducted a survey on Gen Z and younger millennials’ views of life and supplemental insurances. Our research found that younger generations value these products but often have some misconceptions – especially about cost and coverage. The following strategies can help financial institutions address these gaps and set younger generations on a path toward a strong financial future.
Methodology
In July 2025, we surveyed nearly 300 Gen Z (ages 22-28) and young millennial (ages 29-32) consumers with at least some familiarity with life and supplemental health insurance. The goal was to explore their perceptions, needs and understanding of these products.
Four steps financial institutions can take to empower young consumers
1. Address the age-need disconnect
Nearly two-thirds of Gen Zers and young millennials recognize the value of life insurance. Yet 20% say they don’t need coverage until they are older.
Many are healthy, have no dependents and are just starting to build financial stability. That makes it especially important to show “why now” matters. Clearly demonstrating the benefits of supplemental health and life insurance for a person of their age, through relatable, real-life stories, can truly resonate.
Our research found 44% of young consumers prefer learning through stories about people like them. If you want examples to share with your customers, contact your insurance broker or insurance claims department.Top five ways Gen Z wants to learn about supplemental insurance
Real-life examples
1-1 conversations with licensed advisors
Easy-to-read blogs
Short explainer videos (TikTok, YouTube, etc.)
Mobile app content
2. Tailor products to life stages
Factors most likely to influence the purchase of life insurance
Having children
Lower costs and flexible plans
Serious health scare (mine or someone close to me)
Recommendations from trusted people
Clearer information and better understanding
Younger generations not only want to be connected with through relatable stories, they also want to be connected to through personalized solutions. Life stage is more important than age so learn about where they are at in their life journey. Are they renting their first apartment, buying a home or starting a family? Our research shows that major life events influence insurance purchase decisions almost as much as price.
3. Explain plan options and coverage
Many young consumers told us they need more guidance when choosing coverage, especially those who have never owned supplemental insurance before. Among them, 48% said they don’t know enough about the offerings to make a confident decision.
Providing clear and simple tools to compare options, highlight pros and cons, and explaining coverage will help young consumers feel empowered rather than overwhelmed.
Reasons for not purchasing supplemental insurance
4. Promote affordability
Not surprising, affordability is a top concern. More than 30% of those surveyed believe insurance is too expensive, not realizing that premiums are often lower when purchased at a younger age. A recent LIMRA study found that adults 30 years and younger overestimated the cost of life insurance by 10 – 12 times.2
Offering affordable, transparent options — with no hidden fees and a clear explanation of benefits — will build trust. As your relationship builds over time, financial institutions can recommend additional benefits that can strengthen protection and help build financial security.
31% of those surveyed would like to have life insurance, but think it‘s too expensive.
Education that aligns with values
Education that speaks to values is essential. Today’s young adults often define prosperity not by the size of their paycheck, but by the ability to live a flexible, balanced, and meaningful life.
Insurance education should reflect this mindset by highlighting how coverage can adapt to changing life stages, reduce stress in uncertain times, and help reach long-term goals. By framing insurance as a tool for freedom and security, rather than just a financial product, financial institutions can close knowledge gaps and build lasting trust with younger consumers.
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- All statistics are from the Insurance Needs and Views of Younger Generations study, July 2025, unless otherwise stated. Survey participants were compensated for their participation and testimonials. The testimonials were given freely.
- Population distribution in the United States in 2024, by generation. Statista. April 2025.
- Adults age 30 and younger overestimate life insurance cost by 10-12 times. LIMRA. June 2025
This case study is for illustrative purposes. Results could vary based on external factors including but not limited to current economic circumstances, market cycles, and competitive landscape. Unless otherwise noted, all statistics are from the proprietary study conducted in 2025.
Payment protection refers to our suite of products that support lending solutions sold through financial institutions. These products include debt protection and credit insurance.
DOFU 10-2025
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