Gen Z Prioritizes Term Insurance for Financial Security
Gen Zs are leading the charge on term insurance, with a recent study by Tata AIA Life Insurance and NielsenIQ revealing that term insurance has become their top financial priority. Driven by a strong desire for long-term security, affordability, and simplicity, Gen Zs are embracing term insurance not as a backup, but as the foundation of their financial wellness strategy.
Key Highlights from the Study
- 31% of Gen Z respondents plan to purchase term insurance, the highest among all life insurance categories available to them.
- 1 in 4 prefer a Term + Wealth combo, blending protection with savings.
- 57% of Gen Z intenders are willing to invest over ₹2,000 per month, showing a stronger intent than current policyholders in this cohort.
Early Retirement Planning Gains Ground
Gen Zs are also fast-tracking the retirement conversation, with growing interest in the F.I.R.E. (Financial Independence, Retire Early) movement. Many are balancing present-day needs with a long-term view, with 18% already considering retirement and pension plans – a notable shift from the wait-and-watch approach of previous generations.
Health & Wellness as Key Decision Factors
For Gen Zs, financial products without health benefits are a no-go. 60% of respondents prioritize physical health offerings when choosing a life insurance provider, with male Gen Zs (65%) placing a higher emphasis on wellness benefits compared to female Gen Zs (54%).
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Even as Gen Zs swipe, scroll, and shop online, financial trust matters a lot. 53% rely on agents or bank advisors for insurance purchases, while 25% seek financial advice on social media, showing the growing influence of digital creators and content.
“Our research underscores some vital insights: while Gen Zs are highly digital, they continue to rely on time-tested financial solutions such as term insurance for long-term security,” said Girish J Kalra, Chief Marketing Officer, Tata AIA Life Insurance. “With a focus on financial protection, health and wellness, and early retirement planning, Gen Zs are actively preparing for their future.”
The study was conducted across eight major cities, surveying working Gen Z individuals aged 21-28, with an equal split between metro and non-metro regions, and 50% male and 50% female respondents.
