New research from Vitality reveals Gen Z and Millennials are not only aware of protection insurance, they’re actively interested in it. While half of Gen Z and Millennials have some form of cover, many still remain unprotected, highlighting the need to bridge the gap between interest and action.
Around three fifths of Gen Z (58%) and half of Millennials (49%) say they would consider taking out life insurance, with interest in income protection (36% and 32% respectively) and serious illness cover (25% and 23%) also strong. Their motivations are clear, with three in ten (31%) of Gen Z and two fifths (38%) of Millennials admitting that their primary reason for considering protection is to safeguard the financial wellbeing of their loved ones.
Other key drivers include wanting protection in case of illness (32% of Gen Z and 35% of Millennials) and in case of job loss (31% of Gen Z and 34% of Millennials), highlighting a growing awareness of the need for financial resilience among younger adults.
Despite this, many still don’t have protection in place. While affordability is often cited as the main reason, with three in ten (28%) of Gen Z and two fifths (40%) of Millennials saying it’s a barrier, the data suggests a broader disconnect. They want protection products that offer more than a payout, with both groups showing interest in features like access to early intervention services (22% of Gen Z and 24% of Millennials) and around a quarter of Gen Z (25%) and Millennials (22%) stating they want help staying healthy.
Justin Taurog, CEO of VitalityLife, commented: “Our latest research gives us a real opportunity to reframe how people think about protection. It’s clear people want more from their cover, they want products that support them throughout their lives, not just at the point of claim. This shift opens the door for a new approach in how we communicate protection, and advisers are uniquely placed to bridge the gap between this interest and action. By reframing protection as a proactive product, where members see value throughout the life of the plan, we can help a new generation see insurance as something that supports their goals and what matters most to them, not just their risks.”
The research also found that 29% of Gen Z and 28% of Millennials are now prioritising long-term financial stability in response to the economic climate. This shift in mindset presents a clear opportunity for advisers to engage younger clients in meaningful conversations about their future.
