Reframing life insurance to connect with Gen Z

Nearly half of Generation Z is now at a pivotal stage in life: They’re part of the workforce, managing new expenses and balancing the desire to enjoy life with the need to plan for their future. As they begin building a financial foundation, life insurance might feel like a distant or unnecessary priority. Many young adults delay life insurance planning due to limited income and the common mindset of “[insert bad thing here] won’t happen to me.” Financial advisors have an opportunity to change that narrative.

By understanding Gen Z’s mindset, both financially and personally, advisors can facilitate conversations around life insurance in ways that deeply resonate with members of this age group. Tailoring your services to Gen Z’s digital-first habits, values-driven perspective and preferred learning styles can help you better support and safeguard their future.

Speaking Gen Z’s language

Every generation faces a learning curve in their 20s, but Gen Z stands out for their more conservative financial approach compared to that of millennials. Gen Z has found a happy medium between risk-taking and cautious saving, making them more receptive to conversations about financial security. By understanding this frame of mind, advisors can position life insurance as an essential part of a balanced financial strategy — offering security for the future while continuing to live for today.

Storytelling is another powerful strategy to establish life insurance as a form of risk mitigation. Sharing real-life examples about young adults whose families were either financially protected or left struggling after an unexpected loss helps make the importance of life insurance feel more tangible. Once that emotional foundation is built, clients will be more receptive to discussions about the potential risks of delaying life insurance, such as paying higher premiums later or missing out on the compounding benefits of starting early. 

However, Gen Zers are unlikely to engage with you if it feels like you are giving them a sales pitch instead of having an authentic discussion. Position life insurance as part of financial self-care. Start with the bigger picture and present it as a “love contract” — a way to help protect their legacy and loved ones. Avoiding jargon and instead providing education are critical to maintaining Gen Zers’ engagement. Breaking down complex ideas into digestible pieces of information will help further shift the perspective on life insurance in the right direction. 

Meeting Gen Zers where they are

To get Gen Zers in the door, advisors must meet them in the space Gen Z knows best: the digital world. When seeking financial education, this generation often turns to social media before looking for guidance from an advisor. This can potentially lead them to misinformation about topics such as life insurance, as “finfluencers” are not always licensed professionals. 

Advisors must proactively engage through these channels, embracing new platforms, rather than waiting for younger clients to show up on their own. The same tactics of reframing and storytelling can be leveraged online to help attract and connect with this new generation of clients. 

It’s essential to understand how strongly values shape Gen Zers’ financial decisions. They’re socially conscious and seek companies that align with their beliefs. When possible, connect them with insurers that amplify environmental, social and governance or values-based principles. Gen Z will prioritize not just good policies, but also good partners.

As the “great wealth transfer” accelerates, the opportunity to guide Gen Z with solid financial advice is massive — but only by creating a partnership that empowers them to take control of their financial futures and legacies with confidence. 

Amanda Cassar holds a master’s degree in financial planning and is a nine-year member of MDRT. She has been in financial services since 1991 and is the sole director of Wealth Planning Partners in Robina, Queensland, Australia. She is the author of Financial Secrets Revealed. Amanda may be contacted at amanda.cassar@innfeedback.com.