{"id":4800,"date":"2026-04-25T11:52:52","date_gmt":"2026-04-25T11:52:52","guid":{"rendered":"https:\/\/stock999.top\/?p=4800"},"modified":"2026-04-25T11:52:52","modified_gmt":"2026-04-25T11:52:52","slug":"millennials-and-gen-z-are-skipping-out-on-life-insurance-report-finds","status":"publish","type":"post","link":"https:\/\/stock999.top\/?p=4800","title":{"rendered":"Millennials and Gen Z are skipping out on life insurance, report finds"},"content":{"rendered":"

<\/p>\n

Due to the rising cost of housing and wages not catching up to inflation, Gen Zers and millennials are delaying major life milestones like buying a home or becoming a parent. In some cases, they\u2019re pushing off these major milestones to enjoy life in the moment by traveling or making large purchases.\u00a0<\/p>\n

This phenomenon is affecting financial decisions in other important ways. A Capgemini report shared exclusively with Fortune in September shows that even though nearly 70% of adults under the age of 40 see life insurance as essential for a healthy financial future, the options they have don\u2019t currently align with their financial priorities\u2014making them forgo it altogether in some cases.<\/p>\n

Samantha Chow, global leader for life insurance, annuities, and benefits sector at infotech and consulting firm Capgemini, told Fortune Gen Z and millennials will get life insurance if it\u2019s super cheap or free. But the thought of having to pay for it when they still can\u2019t afford to buy a home doesn\u2019t make sense to them.<\/p>\n

\u201cThey\u2019re getting married later, having children later, not [making] financial decisions like [buying] a home or something of that nature,\u201d she said. \u201cThey tend to either put more away, like in the 401K, or they tend to open up their own type of investment accounts and take that extra money and put it away.\u201d<\/p>\n

The study, which was conducted jointly with LIMRA, was based on a survey of more than 6,100 people aged 18-39 across 18 markets, 200 senior insurance executives across 18 markets, and macroeconomic forecasts developed in collaboration with Oxford Economics. Results show 63% of these consumers have no immediate marriage plans and 84% of both single and married people have no immediate plans to have a child.<\/p>\n

Gen Z and millennials want \u2018living\u2019 benefits<\/p>\n

A traditional life-insurance policy is essentially a financial contract between an individual and an insurance company that allows the user to make regular payments (premiums). In return, the insurer promises to pay a sum of money (a.k.a. death benefits) to the user\u2019s named beneficiaries at the time the insured person dies. Typically, those are used to cover things like funeral costs, debts, living expenses, or even education or a mortgage.<\/p>\n

But, there are other add-on features to life insurance policies called \u201cliving benefits\u201d that the insured can use while they\u2019re still alive. One living benefit includes accelerated death benefits, say, if the insured were to be diagnosed with a terminal illness. But other benefits like cash value access let the insured borrow or withdraw from their policy during their lifetime. That could allow for the insured to make major purchases like buying a home. Even Chow said she used her life insurance policy to purchase her first home.<\/p>\n

\u201cI purchased my first life policy at the age of 21. I paid almost cash for my first home,\u201d she said. \u201cI just pulled it out of the cash value. But no one explains that to people.\u201d<\/p>\n

That gets at the crux of the problem: Many members of the younger generations don\u2019t realize or understand these living benefits can be available to them.<\/p>\n

\u201cYou give us this much money for this amount of time, it\u2019s going to build cash value. That\u2019s not too overly complicated,\u201d Chow said. \u201cBut how you can use it, when you can use it, the things you can use it for, what happens when you do these things versus something else, how it impacts the future. That\u2019s the part that gets overly complicated.\u201d<\/p>\n

While some insurance carriers offer living benefits, 1 in 4 consumers are still turning down life insurance because the process is too confusing and the complex jargon makes policies difficult to understand and use, according to the Capgemini study.<\/p>\n

The life insurance industry needs to change<\/p>\n

Thanks to the $124 trillion Great Wealth Transfer, millennials and Gen Z are expecting an average inheritance of $106,000 per person. That makes life insurance an \u201cimportant destination\u201d for these funds, according to Capgemini. Of the people surveyed, 40% ranked life insurance and annuities as the third-most important place for their inheritance, behind stocks and cash savings.\u00a0<\/p>\n

To prepare for generations with a different approach to savings, investments, and finances, the life-insurance industry needs to change, said Chow, who worked in the insurance industry for more than 25 years.\u00a0<\/p>\n

\u201cWe failed you 1,000 times over,\u201d Chow said of the insurance industry. \u201cWe don\u2019t educate you at the time that you\u2019re going through your benefit selection.\u201d<\/p>\n

Chow also argues life insurance needs to become more of a flexible financial product, like savings or investments.\u00a0<\/p>\n

\u201cIt has to be a financial product. It has to meet the needs of a critical illness, of buying a home, of paying for your child\u2019s college in the future. It needs to be an all-in-one type, flexible product that grows with your life.\u201d<\/p>\n

A version of this story was originally published on Fortune.com on September 15, 2025.<\/p>\n

More on insurance:<\/p>\n

#Millennials #Gen #skipping #life #insurance #report #finds<\/p>\n","protected":false},"excerpt":{"rendered":"

Due to the rising cost of housing and wages not catching up to inflation, Gen…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[245],"tags":[10001,640,536,644,641,1459,411,10002,224,564,3574],"_links":{"self":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/4800"}],"collection":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4800"}],"version-history":[{"count":0,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/4800\/revisions"}],"wp:attachment":[{"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4800"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4800"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4800"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}