No marriage, no kids, no policy: Insurance doesn't fit Gen Z's life plan

Under-40 consumers overlook traditional life insurance plans, citing misalignment with their stage in life (32%), high costs of premiums (28%), and lack of immediate benefits (25%)

For India’s and the world’s under-40 consumers, life insurance is losing its traditional appeal. Marriage and parenthood — once seen as natural triggers to buy cover — are being postponed, leaving insurers grappling with a fundamental shift in demand.

 

The World Life Insurance Report 2026, published by the Capgemini Research Institute and LIMRA, reveals that while 68% of adults under 40 acknowledge life insurance is essential for a healthy financial future, most are not buying it. Instead, they see today’s products as misaligned with their lifestyle (32%), too expensive (28%), and lacking immediate, tangible benefits (25%).

 

A Changing Life Path

 

 

The study, which surveyed 6,100 individuals aged 18-39 across 18 global markets, highlights how younger generations are redefining milestones. About 63% reported no immediate plans for marriage, and a striking 84% said they don’t intend to have children soon. Without these life events, the psychological push to buy life cover weakens.

 

Yet, paradoxically, life insurance remains important in wealth planning. With an estimated average inheritance of $106,000 per person set to flow to millennials and Gen Z over the next 15–20 years, 40% of respondents ranked life insurance and annuities as a top-three destination for inheritance funds, after stocks and savings.

 

“As the next generation accumulates wealth and pursues a less traditional life path, their expectations around financial protection are evolving,” said Samantha Chow, Global Leader for Life Insurance at Capgemini. “Insurers can’t rely solely on death protection. They must build products with near-term gratification and living benefits.”

 

What the Next Generation Wants

 

Instead of lump-sum death payouts, under-40 consumers are demanding ‘living benefits’ — features that reward and support them during their lifetime. These include:

 

Emergency financial support for sudden expenses.

 

Wellness-linked rewards for healthy behavior.

 

Coverage for fertility treatments and family planning needs.

 

Portability across jobs, so coverage continues even if they switch employers.

 

Currently, 44% of employees with group policies want portable coverage, but just 19% of insurers offer it. Many are forced to start fresh policies when they change jobs, despite being satisfied with their previous coverage.

 

“Carriers need a different playbook for younger customers,” said Bryan Hodgens, Head of LIMRA Research. “They must not only address price misconceptions but also reimagine products to meet today’s financial priorities while staying relevant for the future.”

 

Technology Gap in Life Insurance

 

The report also points to a significant digital experience gap. While 59% of under-40 consumers want direct digital engagement, only 31% of insurers provide such platforms. Even more stark: 77% expect personalized, data-driven recommendations, but just 16% of insurers deliver this at scale, constrained by outdated systems.

 

This disconnect risks alienating the very generation that will soon hold the bulk of global wealth.

 

The Path Forward: Three Core Pillars

 

To remain relevant, the report recommends insurers focus on three transformation pillars:

 

Product Innovation – Launch flexible policies with built-in living benefits, simplify underwriting, and gamify engagement for continuous value.

 

Empowered Advisors – Use AI-driven insights to deliver personalized guidance and adopt modern compensation models to attract young advisors.

 

Strategic Partnerships – Embed insurance into everyday experiences via collaborations with banks, wellness providers, and lifestyle platforms.

 

An Industry in Transition

 

The stakes are high. With aging populations, rising longevity, and economic uncertainty reshaping financial planning, the industry must balance its traditional role with the changing needs of younger consumers.

 

The report notes that life insurance is still viewed as a cornerstone of financial security, but unless carriers simplify processes, cut jargon, and offer immediate relevance, younger generations will continue to skip cover in favor of more flexible investments.

 

For insurers, this is less about replacing death benefits and more about building lifetime engagement. As Chow concluded, “The winners will be those who meet customers where they are — blending financial protection with real, everyday value.”