There has been a drop in the number of younger consumers buying life insurance, as people delay marriage and parenthood according to the latest World Life Insurance Report 2026 from Capgemini and LIMRA.
The traditional milestones have traditionally been seen as triggers to buy life insurance and other protection products. This global study — of more than 6,000 adults under 40 — found that 63 per cent of adults in this group have no immediate marriage plans, while 84 per cent of married and single people in this cohort have no immediate plans to have a child.
As a result almost a third (32 per cent) of respondents said life insurance is does not fit their current life stage. In addition, the report found that many of this cohort struggle to get to grips with these products, with one in four (25 per cent) saying confusing processes and complex jargon makes policies difficult to understand and use.
The report also found that high premium costs are a potential barrier, cited by almost a third (28 per cent) of respondents.
The report said many younger adult want access to ‘living benefits’ that support their changing lifestyles, and are more likely to prioritise wellness rewards, fertility treatment coverage and emergency financial support. It called on providers to innovate to deliver these types of benefits alongside traditional cover.
The report also warns that outdated technology and processes risk alienating younger consumers. While 59 per cent want direct digital engagement, only just 31 per cent of insurers surveyed offer the platforms to enable it. This shortfall is even more pronounced when it comes to advanced technologies, as 77 per cent of consumers expect comprehensive, data-driven recommendations, but only 16 per cent of insurers that participated in the survey provide them at scale, largely due to outdated legacy systems.
The report added that consumers also want life insurance that isn’t contingent on their current employer. Despite 44 per cent of employees with a group policy seeking coverage that moves with them when they change jobs, only 19 per cent of life insurers currently offer this.
Despite this, the report said the sector’s relevance could increase as the intergenerational wealth transfer gathers pace. It pointed out that millennials and Gen Z in the US are set to inherit an average of $106,000 each over the next two decade — with 40 per cent of respondents identifying life insurance and annuities among their top three priorities for this money. This was seen as more important than equity investments and cash savings.
LIMRA senior vice president and head of research Bryan Hodgens says: “Carriers need a different playbook when marketing life insurance to the younger generations.
“Our joint research shows that the price misconceptions, coupled with competing financial priorities, positions life insurance at a disadvantage with younger adults. Carriers must not only demonstrate the accessibility and affordability of life insurance but also need to reimagine the product to address younger adults’ current financial priorities while adapting to meet their future financial goals as they age.”
Samantha Chow, global leader for life insurance, annuities and benefits at Capgemini adds: “Life insurers cannot rely solely on traditional death protection to sustain their future. They need to deliver tangible benefits that customers can access during their lifetime.”