May 11, 2023
Gen Z Hesitant About Life Insurance But There Is A Silver Lining
Here’s a chart graphing the decline in life insurance coverage but focusing on demographic trends provide a roadmap for attracting new policyholders.
The decline in life insurance coverage among US consumers is a pressing issue, yet focusing on demographic trends could provide a roadmap for attracting new policyholders. By tackling the unique challenges faced by each age group, sales teams can effectively grow the overall adoption of life insurance plans.
Gen Z, in particular, holds the most promise for fresh growth. In fact, this cohort is the only one to have shown an uptick in life insurance coverage during the projection period: Insider Intelligence anticipates a 3.5% rise in life insurance uptake among Gen Z adults from 2022 to 2025, equating to over 6 million fresh policyholders.
This generation is progressively recognizing the value of insurance. For the first time in 2023, the number of Gen Z adults will surpass that of their younger counterparts, albeit still being roughly half the size of the millennial population. By 2025, an impressive 37.1% of Gen Z is projected to have life insurance, outpacing the growth rates of earlier generations.
However, Gen Z individuals express hesitation about life insurance acquisition. A significant proportion of this group (86%) exhibits reservation about buying life insurance, compared to 70% of the baby boomer generation, with policy affordability being a primary concern, according to NerdWallet. In their quest for clarity, Gen Z individuals are the most prone to engage with an agent and conduct social media-based research prior to making a purchase.
Source: Insider Intelligence | eMarketer