I’m Gen Z… Do I need life insurance?

What is life insurance?

Gen Z adults today are between 18 and 24 years old…they are young and healthy overall. So if you’re part of this generation, you might be thinking: Why would I need life insurance?

but life happens. Life insurance can still be beneficial in the event of sudden death, illness, or other tragic and unforeseen circumstances.

Life insurance is there to protect your loved ones financially in case something happens to you. You may be recently engaged, married or have young children, in which case life insurance is absolutely crucial.

Even if you haven’t already, life insurance can still be a great way to accumulate wealth that you can pass on or use later in life. It’s also a safety net to make sure you don’t leave your family with unpaid debts when you die.

Knowing the different types of life insurance available is the first step in deciding what best suits your lifestyle.

term life insurance

Life insurance is usually the cheaper option. It protects you for a set period of time, usually between 10 and 30 years. If you die during this time, the death benefit will be paid to your beneficiaries. The disadvantage of term life insurance is that it has no cash value after it expires.

Permanent Life Insurance

Permanent life insurance is usually more expensive than term insurance because it covers you for the rest of your life as long as premiums are paid. Long-term liability insurance grants you the death benefit and monetary value, allowing you to borrow or withdraw as needed as your plan grows in value. Although these policies are more expensive, they’re a great option for those looking to accumulate wealth and for those with lifelong financial responsibilities.

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Pros and cons of life insurance for Gen Z:

The pros and cons of life insurance can vary, so be sure to do your research before making a decision.

  • Provides a financial safety net for your loved ones when you die
  • You can now secure lower premiums while you are young and healthy
  • Payabledepending on which plan you choose
  • Start creating wealth that can help you leave a legacy
  • Make sure that all debts, such as B. student loans, are covered and not passed on to your parents
  • Can get expensive depending on which plan you choose
  • You may not be using the cover (although this could be considered a good thing!).
  • Finding and choosing a policy that’s right for you can be difficult

Generation Z life insurance trends

According to the Insurance barometer study 2022, the need for life insurance is high among Gen Z – only 34% have coverage. When it comes to the reasons why they don’t have life insurance, this generation is much more uncertain about the products and more likely to say they wouldn’t qualify for coverage.

A new perspective on life insurance

As companies across the board go more digital to appeal to younger audiences, it seems like Gen Z wants a fully online process for purchasing life insurance. But the same Barometer study shows they’re actually the most likely of all generations to say they would research insurance online, but eventually buy in person. Gen Z still wants a face-to-face conversation when making this important decision.

If this sounds like you and you’re looking for help with this, we recommend speaking to an insurance professional. Check out Life Happens agent search to find one near you. An agent can help you compare products and insurance companies so you can find the best fit for your situation.

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