If you’re part of Gen Z, chances are life insurance isn’t at the top of your priority list. Most young adults between 18 and 24 feel healthy, invincible, and focused on building their careers or enjoying new independence. Still, unexpected events happen, and life insurance can play a bigger role in your financial future than you might think.
At its core, life insurance provides financial support to your loved ones if something were to happen to you. That could mean helping a spouse or partner manage expenses, ensuring young children are cared for, or preventing your parents from inheriting your student loans and other debts. Even if you don’t yet have dependents, life insurance can be an early step toward building wealth and securing long-term financial stability.
Understanding the Types of Coverage
Term Life Insurance
Term coverage is usually the most affordable option. It protects you for a set number of years—typically 10 to 30. If you pass away during that period, your chosen beneficiary receives the payout. The tradeoff is that term policies don’t build cash value once the coverage period ends.
Permanent Life Insurance
Permanent coverage lasts your entire lifetime, as long as you continue paying premiums. These policies also include a cash value component that grows over time and can be borrowed against or withdrawn. While premiums are higher than term insurance, permanent policies are often attractive for people thinking long-term about wealth building and lifelong obligations.
Pros and Cons for Gen Z
Pros:
- Provides a financial safety net for your family or partner.
- Premiums are cheaper when you’re young and healthy.
- Helps protect against passing debt on to loved ones.
- Some policies allow you to build wealth and leave a legacy.
Cons:
- Costs can feel high if you’re just starting out financially.
- You may never “use” the coverage, which can feel like wasted money.
- Choosing the right policy can be overwhelming with so many options.
What the Numbers Say
Despite the benefits, only about one-third of Gen Z currently has life insurance. A major reason is confusion—many assume they won’t qualify or don’t fully understand how policies work. Interestingly, while this generation is the most likely to research insurance online, many still prefer to finalize purchases face-to-face. That balance between digital convenience and personal guidance is shaping how companies approach younger customers.
Final Thoughts
Life insurance isn’t just for older adults with families and mortgages. For Gen Z, it can mean locking in low premiums, creating a financial foundation, and protecting loved ones from financial strain. The earlier you start, the more affordable and beneficial coverage can be. Even if life insurance doesn’t feel urgent now, considering it sooner rather than later could set you up for a stronger financial future.
