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I’m Gen Z… Do I Need Life Insurance?

by Veronica Gordon | November 4, 2022

What is Life Insurance?
Gen Z adults are between the ages of 18 and 24 today… they’re young and healthy overall. So if you’re part of this generation, you may be thinking, why would I need life insurance?

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

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

Even if that’s not the case for you yet, life insurance can still be a great way to start accruing wealth to pass on or use later in life. It’s also a safety net to ensure you don’t leave unpaid debts to your family if you die.

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

Term Life Insurance
Term life insurance is generally the more affordable option. It covers 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 beneficiary. The downside to term insurance is that there is no cash value after it expires.

Permanent Life Insurance
Permanent life insurance is usually more expensive than term life, as it covers you for the rest of your life, so long as premiums are paid. Permanent insurance gives you the death benefit and cash value, so as the value of your plan increases, you can take out a loan or make withdrawals as needed. While these policies are more expensive, they are a great option for accumulating wealth and for those with lifelong financial responsibilities.

Pros & Cons of Life Insurance for Gen Z:
The benefits and drawbacks of a life insurance policy 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 lock in lower premiums now while you’re young and healthy
Affordable, depending on which plan you choose
Start creating wealth that can help you leave a legacy
Make sure any debts, like student loans, are covered and not passed on to your parents
Can be expensive, depending on which plan you choose
You may end up not using the coverage (this could be seen as a good thing, though!)
It can be difficult to find and choose a policy that’s right for you
Gen Z Life Insurance Trends
According to data from the 2022 Insurance Barometer Study, the need for life insurance is high among Gen Z—just 34% have coverage. When it comes to their reasons for not owning life insurance, uncertainty about products is much higher among this generation, and they are more likely to say they would not qualify for coverage.

A Fresh Take on Life Insurance
As companies go more digital across the board to appeal to younger audiences, it may seem like Gen Z would want an entirely online process for getting life insurance. But the same Barometer Study shows that they’re actually the most likely of any generation to say they would research insurance online, but ultimately buy in person. Gen Z still wants some face-to-face interaction when it comes to this important decision.

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

Veronica Gordon –
Veronica Gordon is a consumer safety writer and legal content contributor that works with Elk and Elk Co., Ltd., a personal injury law firm located in Seattle.