Outlook Money
Gen Z and millennials are taking the lead in protecting their financials and their future by living frugally and saving aggressively for an early retirement.
Young adults in their 20s are increasingly buying term life insurance covers, a product which was once typically reserved for older, family-oriented investors. Fuelled by a surge in financial literacy and introduction to digital platforms, Gen Z is now increasingly taking interest in financial matters.
The simplified process of buying insurance through digital insurance platforms has made purchasing term life insurance more accessible to Gen Z.
Social media platforms like TikTok and YouTube have emerged as the main sources of financial education for Gen Z. Approximately two-thirds of people aged 18-42 years use YouTube for financial information, followed by Instagram, Facebook, and TikTok.
The concept of Financial Independence, Retire Early (FIRE) has gained much traction among Gen Z. The concept states that one should aim to retire by age 40 through frugal living and aggressive saving.
In India, Gen Z and Millennials are leading the charge in insurance sales, which accounts for 85 per cent of total policy sales made to Gen Z and millennials. Insurtech companies are facilitating this shift by offering digital platforms that cater to the changing needs of younger consumers.
Gen Z's early adoption of term life insurance signifies a broader shift in financial planning. By using digital platforms, seeking financial education through social media, and aligning with concepts like FIRE, Gen Z is taking proactive steps toward securing their financial future.
As insurers adapt to meet these evolving needs, the industry is getting ready for continued transformation.