Study Reveals Gen Z’s Preference for Term Insurance
A recent study conducted by Tata AIA Life Insurance in collaboration with NielsenIQ has found that 31% of working Gen Z individuals in India prefer term insurance over other life insurance plans. The survey, which focused on respondents aged 21-28, highlights a clear shift among young adults toward financial protection, with term insurance standing out among life insurance options.
The report emphasizes that Gen Z is gravitating toward term plans due to their straightforward structure, affordability, and promise of long-term security. Key findings from the study include:
- 57% of those considering term insurance are prepared to invest over INR2,000 ($24) per month
- 18% of those surveyed are already considering pension and retirement solutions
- 60% of respondents consider health benefits a key factor when choosing life insurance, with interest notably higher among men (65%) than women (54%)
Despite being digitally savvy, Gen Z continues to place trust in reliable, traditional financial tools like term insurance for long-term stability, according to Tata AIA Life Insurance chief marketing officer Girish J Kalra. The study also found that Gen Z relies heavily on conventional financial guidance, with 53% preferring to purchase insurance through agents or bank advisors. However, 25% also turn to social media for financial advice.
The survey spanned eight cities across both metro and non-metro regions, with a balanced gender representation and an average respondent age of 25.
This image shows a young Indian family, representing the Gen Z demographic discussed in the study, engaging in financial planning discussions.
