New research from the OneFamily Group, which includes the life and critical illness brand Beagle Street, has revealed that Gen Z (18 – 27 year olds) and Millennials (28 – 40 year olds) are more likely to purchase protection insurance and see it as important if they have had financial education.
The bespoke study of 2000 18 – 40 year old adults found a direct link between financial literacy and purchasing protection policies. The findings showed that 3 in 10 18 – 40 year olds (30%) have life insurance, however this figure increases to 37% among those that have had some form of financial education, compared to 27% of those that have had none. Similarly, 7% overall have Income Protection, rising to 10% if financially educated, and 7% have Critical Illness, rising to 9% if financially educated.
Those that are financially educated are also more likely to view protection insurance as more important compared to those that haven’t had any. The difference in perceptions is detailed in the table below:
| Type of insurance | Had financial education (18-40 year olds) | Have not had financial education (18-40 year olds) |
| Life insurance | 84% see it as important | 75% see it as important |
| Critical illness | 81% see it as important | 69% see it as important |
| Income protection | 75% see it as important | 58% see it as important |
Of the 18 – 40 year olds surveyed, 36% indicated they have had financial education. This was through a variety of sources, including online courses, schools and universities, employers, government programmes or friends and family. The most common place for those who said they have had financial education to receive it was from online resources, with 43% stating this route, followed by family and friends (36%), college/university (29%) and employers (20%). Only 18% said they had received financial education at primary or secondary school.
Demographic divide
Certain demographics appear to be missing out more on financial education, with 41% of men saying they have had some form compared to just 32% of women. Those living with a partner are significantly more likely to have had financial education than those that are living alone – 41% compared to 29%. Homeowners are also much more likely to have had financial education than renters – 44% compared to 30%. There are also clear regional differences. Almost half of those living in London have had some kind of financial education (48%) which is almost double the percentage of those living in Scotland (25%).
Gen Z v Millennials
The UK Government confirmed earlier this month that financial literacy will be compulsory for primary and secondary schools in England, starting from September 2028. The curriculum will include teaching children topics including budgeting, mortgages, compound interest and money management. This is a positive move and supports the importance of learning financial literacy before beginning work. The research reveals that more than 3 in 10 (34%) Gen Z respondents who have received financial education said they had it at college or university, this compares to just a quarter of Millennials (25%).
Ryan Griffin, Protection Director at OneFamily, said: “There are some stark differences when it comes to financial education, with nearly three in five 18 – 40 year olds having had no financial education at all. What is clear however is the important role it plays in helping both Gen Z and Millennials understand the importance of protection, with a surge in numbers understanding the importance of Critical Illness, Income Protection and Life Insurance following some form of financial education.
“This is an important foundation to build on, and indications show Gen Z understand the importance of protection better than previous generations. However, there is still more to be done to turn awareness and understanding into action.
“With the recent news that children will also learn financial literacy from 2028 at primary school, there is a real opportunity here for younger generations to learn about both money management and protecting their futures earlier. This is essential to help people build confidence, resilience and the ability to make informed choices.”
