The trend: High housing costs and stagnant wages are causing Gen Z and millennials to delay marriage, homeownership, and parenthood, per a Capgemini and LIMRA study. And while 68% of these younger adults see life insurance as “essential for a healthy financial future,” current products aren’t resonating.

By the numbers: Many young consumers see life insurance mainly as a death benefit, and without marriage or children, they don’t see who it would help.

• 63% of adults under 40 have no immediate marriage plans
• 84% have no immediate plans for children

What insurers can do to reach younger adults: Advertising messaging must close the gap in consumers’ understanding of life insurance benefits. To do this, targeted ads and communications must:

1) Highlight living benefits and flexibility:

• Promote cash-value policies that can be accessed for goals like buying a home, paying medical expenses, or starting a business.
• Emphasize that life insurance isn’t just a death benefit, but a flexible financial tool that grows with them.

2) Offer low-cost, entry-level options and incentives

• Introduce affordable starter policies that make sense in early adulthood, not just after starting a family.
• Use micro-policies to keep premiums manageable, and digital-first sign-ups to reduce friction.
• Offer bonus cash value growth or premium discounts for actions like buying a policy before buying a home

3) Engage consumers digitally:

• Leverage apps, social media, and AI-driven chat tools to answer questions, illustrate benefits, and simulate scenarios for major life purchases.