The trend: High housing costs and stagnant wages are causing Gen Z and millennials to delay marriage, homeownership, and parenthood, per a Capgemini and LIMRA study. And while 68% of these younger adults see life insurance as “essential for a healthy financial future,” current products aren’t resonating.
By the numbers: Many young consumers see life insurance mainly as a death benefit, and without marriage or children, they don’t see who it would help.
- 63% of adults under 40 have no immediate marriage plans
- 84% have no immediate plans for children
What insurers can do to reach younger adults: Advertising messaging must close the gap in consumers’ understanding of life insurance benefits. To do this, targeted ads and communications must:
1) Highlight living benefits and flexibility:
- Promote cash-value policies that can be accessed for goals like buying a home, paying medical expenses, or starting a business.
- Emphasize that life insurance isn’t just a death benefit, but a flexible financial tool that grows with them.
2) Offer low-cost, entry-level options and incentives
- Introduce affordable starter policies that make sense in early adulthood, not just after starting a family.
- Use micro-policies to keep premiums manageable, and digital-first sign-ups to reduce friction.
- Offer bonus cash value growth or premium discounts for actions like buying a policy before buying a home
3) Engage consumers digitally:
- Leverage apps, social media, and AI-driven chat tools to answer questions, illustrate benefits, and simulate scenarios for major life purchases.