September is Life Insurance Awareness Month
Gen Z and Millennial adults are emerging as the most likely to say they need life insurance. Yet, they remain the least confident in their coverage, according to the World Life Insurance Report 2026 by LIMRA and the Capgemini Research Institute.
Young Adults Are Delaying Traditional Triggers Such as Marriage and Parenthood Which Normally Spur Interest in Life Insurance
The study of more than 6,100 adults under 40 across 18 markets found that while 68% view life insurance as essential to their financial future, adoption is lagging due to products misaligned with their priorities, confusing processes, and lack of near-term benefits.
With younger consumers delaying traditional milestones like marriage (63%) and parenthood (84%), insurers face pressure to revamp the value proposition. Millennials and Gen Z, expecting average inheritances of $106,000 as part of the coming wealth transfer, rank life insurance and annuities as a top-three priority behind stocks and savings.
Executives say carriers must address cost concerns, portability, and access to living benefits — from wellness rewards to fertility coverage — while also investing in digital tools and ecosystem partnerships to meet expectations for personalized, seamless experiences.
Many Young Adults Assume Life Insurance is Priced Like Auto Insurance
One of the main barriers preventing more young adults from purchasing life insurance is price. According to LIMRA, many young adults significantly overestimate the cost of life insurance, assuming life premiums are comparable to auto insurance — miscalculating life premiums as five times more expensive for healthy applicants than they actually are.
This misconception discourages them from prioritizing coverage. As one 35-year-old non-owner explained, “Perceived price has kept me from purchasing life insurance because I’ve heard that it can be expensive, so I haven’t even made it a priority because of that.”
Survey data confirms the gap: 37% of Gen Z and 46% of Millennials cite cost as the primary barrier to purchasing, even though healthy adults aged 18–30 estimated the price of a $250,000, 20-year level-term policy to be 10–12 times higher than its actual cost.
In contrast, young policyholders often express surprise at the affordability of their premiums. “I’ve been surprised, but in a good way,” said a 32-year-old owner.
The findings suggest greater transparency about actual costs could help carriers overcome misconceptions and encourage younger adults to secure coverage.
With 80% of Gen Z and Millennials using social media platforms like YouTube, Facebook, and Instagram to research financial products, insurers have a growing opportunity to use digital channels to close the knowledge gap and reach consumers where they are.
Six in 10 Say They Would Use AI to Buy Life Insurance
According to LIMRA research, AI tools are also emerging as valuable resources for educating consumers on the importance of life insurance. The trade association notes that nearly 6 in 10 young adults say they would use an AI tool to research life insurance.
Young adults surveyed said that comparison and budgeting tools would provide clarity on the best products and help them determine how much insurance they can afford. At the same time, the implementation of chatbots and video could help demystify the life insurance buying process.
