Jay Jackson
Chairman & CEO
Digital natives who have grown up in an age of economic uncertainty and political polarization, Gen Z has reason to be skeptical of traditional investment tools and products. In fact, those born between 1997 and 2012 are far less likely to prioritize obtaining insurance products like rental insurance, travelers insurance, contents insurance than older generations. The same goes for life insurance – just 24% of Gen Z have life insurance according to a 2024 study by the National Association of Insurance Commissioners.
There are many reasons for this: the unstable job market and the rise of online misinformation, coupled with the reality that when you are young and healthy, life insurance seems like an unnecessary expense. However, life insurance is more than just a safety net for your loved ones; it’s a valuable, reliable asset that can pay dividends later in life. A key advantage of investing in life insurance early is the potential for cash value growth, uncorrelated to market whims and economic shifts. Many policies accumulate cash value over time, which can be accessed later in life.
Life settlements allow policyholders to sell their life insurance policy for a lump sum of cash, meaning that having a life insurance policy doesn’t exclusively provide benefits after death. Selling a life insurance policy can provide a meaningful cash windfall in the future and can help support a better quality of life down the road. By investing in life insurance now, Zoomers can position themselves to tap into this resource when they need it most, providing financial flexibility down the line.
Another factor to consider is the affordability of life insurance for younger individuals. Premiums tend to be lower when you’re young and healthy, making it a more cost-effective investment. Additionally, many insurance companies offer policies designed specifically for young professionals, with flexible terms and options that cater to your unique needs.
While it’s understandable that Gen Z may be skeptical of life insurance—a traditional financial product that doesn’t immediately feel relevant—the long-term benefits can be too significant to ignore.
The reality is economic conditions – exploding housing costs and reduced housing supply, interest rate spikes and an ever-shifting labor market – have made it nearly impossible for younger Americans to access the traditional pathway for building wealth: homeownership. In 2010, the median homebuyer in America was 38 years old. In 2024, the median buyer was 56 years old. We have a broad, structural problem here, one that is acutely harming Gen Z’s opportunity to safely build wealth.
But by considering life insurance as a strategic investment in an asset that you own, rather than just an expense, young professionals can help secure their financial future and create opportunities that may not be immediately apparent. So, as you plan your financial journey, take a moment to explore the potential of life insurance—it might just be one of the best decisions you make.
