We need to up our game to reach Gen Z

Two-thirds of Generation Z are now 18-28 years old, representing nearly 50 million adults. While many are delaying key milestones that have traditionally prompted life insurance purchases — such as getting married, buying homes and having children — our research shows they are very concerned about financial security and the COVID-19 pandemic had a more profound impact on this generation. Three in 10 Gen Zers said the reason they purchased life insurance was because of the pandemic — a higher percentage than for any other generation.

Still, this generation remains least likely to own life insurance and most likely to acknowledge living with a life insurance coverage gap. Only 42% say they have coverage and 46% say they need coverage, or more of it. Financially, Gen Zers are more worried than older generations are about meeting their day-to-day financial obligations, which are deterring them from getting life insurance. The top reasons they give for not purchasing are money related: they have other financial priorities (37%) and they believe it’s too expensive (36%).

Lack of knowledge is a barrier 

Only one-third of Gen Z adults believe they are very knowledgeable about life insurance, and many have misconceptions about the role of life insurance in their overall financial security. They are the most likely generation to believe life insurance is just for final expenses and that they won’t personally benefit from life insurance. They don’t understand the process of underwriting, and more than 1 in 10 believe they wouldn’t qualify for coverage.

Most important, given their heightened concerns about finances, our study finds the self-reported healthiest members of Gen Z are likely to overestimate the cost of life insurance tenfold. This substantial misunderstanding about the affordability and accessibility of life insurance is likely the biggest obstacle.

Social media is Gen Z’s primary source for financial information 

Gen Zers rely heavily on social media for their financial information. The 2025 Insurance Barometer Study, conducted by LIMRA and Life Happens, finds 84% of Gen Zers say they use social media (most prominently, YouTube, TikTok and Instagram) to get information and recommendations on financial products such as life insurance. 

Gen Z consumers say they use a blend of recognized experts, social influencers and online communities to get reliable information on financial or insurance products. LIMRA research shows that of those who use social media for these purposes, 46% of Gen Zers say they follow financial advisors, 33% follow insurance companies and 32% follow financial influencers on social media. Although this approach is more nuanced than that of other generations, it can create more opportunities to be exposed to misinformation, which feeds misconceptions about life insurance. Creating content to dispel these should be a priority for our industry. 

Social media do’s and don’ts from Gen Z

This year, LIMRA asked younger consumers for their advice about how life insurers and financial professionals can be most effective engaging them on social media. Mainly, LIMRA found Gen Z consumers value authenticity on social media. They prefer genuine stories over polished, scripted content and favor recommendations from relatable, credible individuals (including well-known influencers) rather than overt sales pitches. 

Their recommendations to our industry: 

✅ Create visually appealing and engaging content that will help educate them about life insurance. 

✅ Make it concise and easily-digestible (keep in mind, the average length of a TikTok video is less than a minute). 

✅ Talk about the positives — life insurance offers financial protection and security and is more affordable than people might think.

✅ Encourage testimonials from recent buyers who share their experiences navigating the purchase process. LIMRA’s study reveals insured Gen Z consumers felt a sense of calm, peace and relief after their purchase.

As we commemorate Life Insurance Awareness Month this September, our industry must use all the tools available to solve the life insurance gap that exists in the U.S.  There are more than 100 million adults (including 22 million Gen Zers) whose financial security is in the balance. 

Sean Grindall is senior vice president and head of life insurance and annuity-North America at LIMRA and LOMA. Contact him at [email protected].