A recent study by Tata AIA Life Insurance, in collaboration with NielsenIQ, has found that term insurance is the top financial choice for 31% of working Gen Z individuals in India. The study, titled “New Age Habits, Traditional Values,” surveyed individuals aged 21-28 and revealed a shift towards financial protection over other life insurance products. Gen Z is drawn to term plans due to their simplicity, affordability, and long-term security.
The report highlights that 57% of those planning to buy term insurance are willing to invest more than ₹2,000 per month. This indicates a significant commitment to financial planning and security among Gen Z individuals. According to Girish J Kalra, Chief Marketing Officer at Tata AIA Life Insurance, “Gen Zs are highly digital, but they continue to rely on time-tested financial solutions such as term insurance for long-term security.”
Key trends from the study include a “protection first” approach, with 31% of respondents planning to buy term insurance. Additionally, 1 in 4 Gen Zs prefer term insurance bundled with wealth plans, while 18% are already considering pension and retirement plans. Health benefits are also a key factor, with 60% of respondents valuing them when choosing life insurance. Interestingly, males (65%) place a higher value on health benefits than females (54%).
Despite being digital natives, Gen Z individuals prefer traditional channels for financial decisions, with 53% opting to buy insurance through agents or bank advisors. A significant 25% also seek financial advice on social media. The survey was conducted across eight cities, covering both metro and non-metro areas, with an equal gender split and an average respondent age of 25. Overall, the study suggests that Gen Z individuals in India are prioritizing financial security and protection, with term insurance emerging as a top choice.