I’m Gen Z… Do I need life insurance?

What is life insurance?

Gen Z adults today are between the ages of 18 and 24…they are overall younger and healthier. So if you are a part of this generation, you must be wondering why would I need life insurance?

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

Life insurance is there to keep your loved ones financially secure in case something happens to you. Life insurance is absolutely crucial in case you are recently engaged, married or have young children.

Even if this isn’t the case for you yet, life insurance can be a great way to start building up money to use or save later in life. It’s also a safety net to make sure you don’t leave unpaid debts for your family if you die.

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

term life insurance

Term life insurance is generally the more affordable option. It covers you for a specified period, usually between 10 and 30 years. If you die during this time, the death benefit will be paid to your beneficiary. The downside of term insurance is that it has no cash value after it expires.

permanent life insurance

Permanent life insurance is usually more expensive than term life because it covers you for the rest of your life, as long as the premiums are paid. Permanent insurance gives you death benefit And cash value, so as the value of your plan grows, you can take loans or make withdrawals as needed. While these policies are more expensive, they are a great option for those looking to accumulate wealth and have lifelong financial responsibilities.

Pros and Cons of Life Insurance for Gen Z:

The benefits and drawbacks of life insurance policies can vary, so be sure to do your research before making a decision.

  • Provides a financial safety net for your loved ones in case you die
  • Now you can lock in lower premiums while you’re young and healthy
  • affordabledepending on the plan you choose
  • Start building assets that can help you leave a legacy
  • Make sure any debt, such as student loans, is covered and not passed on to your parents.
  • Can be expensive depending on the plan you choose
  • You can’t use coverage (although this can be seen as a good thing!)
  • Finding and choosing the right policy for you can be difficult

gen z life insurance trends

according to data from 2022 Insurance Barometer StudyThe need for life insurance is high among Gen Z—only 34% have coverage. When it comes to their reasons for not taking out life insurance, uncertainty about products is high 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 wants a completely online process for obtaining life insurance. But that same barometer study shows they’re actually the most likely of any generation to say research insurance online but finally 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 with the process, we recommend speaking with an insurance professional. life happens’ see 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.

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