A Blind Spot for Younger Americans: Prioritizing Investing Over Insurance
A recent study by Northwestern Mutual reveals that a significant majority of younger Americans are prioritizing wealth accumulation over protecting their assets through life or disability insurance. The 2025 Planning & Progress Study found that 61% of Gen Z and 60% of millennials are overly focused on building wealth without adequately safeguarding their financial futures.
Jason Thrap, a wealth management advisor at Northwestern Mutual, notes that while it’s positive to see younger generations starting to save and invest early, this enthusiasm often overlooks the importance of protection products. “The accessibility of investment platforms and financial information through digital means has empowered them to take control of their financial futures,” Thrap explained. However, this focus on wealth building often leaves them vulnerable to life’s uncertainties.
Thrap emphasizes that a comprehensive financial plan should include both investments and protection products like life and disability insurance. Without these protective measures, individuals may face severe financial hardship during unexpected life events. “As an advisor, it is our role to meet people where they are, identify potential blind spots, and help clients build comprehensive plans for financial security,” Thrap said.
The study highlights several reasons why younger consumers tend to neglect protection products. These include a lack of awareness and understanding of these products, the perception of invincibility among young people, and immediate financial pressures such as student loans and high living costs.
To address this issue, financial professionals are advised to focus on building relationships with their clients, educating them about the benefits of protection products, and offering tailored solutions. “It starts with slowing down, taking time to build relationships, one at a time, and asking better questions,” Thrap advised. By doing so, financial professionals can help younger Americans understand the critical role of protection products in achieving long-term financial security.
The 2025 Planning & Progress Study was conducted by The Harris Poll on behalf of Northwestern Mutual among 4,626 U.S. adults aged 18 or older. The survey took place online between January 2 and January 19, 2025.
