As the oldest members of Gen Z turn 28 in 2025, this tech-savvy, socially conscious generation is stepping into adulthood—and reshaping industries along the way. One of the more surprising sectors feeling Gen Z’s influence? Life insurance.
Once considered a product only for older adults with families or mortgages, life insurance is now attracting a new wave of younger buyers. Gen Z is redefining how life insurance is sold, packaged, and perceived. Here’s how they’re changing the life insurance industry in 2025.
1. Digital-First Expectations
Gen Z grew up with smartphones, instant access to information, and digital banking. They expect the same ease and speed when buying life insurance. In response, insurers have accelerated their digital transformation. Today, many carriers offer fully online applications, instant quotes, and even AI-driven underwriting that allows policies to be approved in minutes.
Companies that fail to provide seamless mobile-first experiences are quickly falling behind. Gen Z doesn’t want to meet with agents in person—they want chatbots, apps, and fast, transparent service.
2. Value-Driven Purchasing
Unlike previous generations that may have purchased life insurance primarily out of financial prudence, Gen Z views insurance through a broader lens. Social impact, ethical business practices, and sustainability matter. They’re more likely to choose insurers that demonstrate environmental, social, and governance (ESG) values.
Some companies now highlight their commitment to community reinvestment, climate initiatives, or diverse leadership as a way to connect with younger buyers. Gen Z wants to know their money supports companies that align with their values.
3. Focus on Financial Wellness
Gen Z is financially cautious, shaped by student debt, high inflation, and economic uncertainty. They’re not just buying life insurance for protection—they see it as part of a larger financial wellness plan. Life insurance products that double as savings or investment tools, such as indexed universal life (IUL) or whole life policies with cash value components, are gaining popularity.
In 2025, many insurers are bundling life insurance with financial planning tools, including budgeting apps, investment advice, and access to certified financial planners—all accessible via mobile platforms.
4. Demand for Flexibility and Customization
Gen Z rejects the one-size-fits-all approach. They want life insurance that fits their lifestyle and goals. That means flexible policy terms, adjustable coverage, and optional riders that reflect modern needs—like mental health support, student loan protection, or pet coverage.
Insurers are responding with modular policies that allow young adults to build plans piece by piece, adding or removing features as their lives change.
5. Transparency and Education Are Key
Perhaps more than any other generation, Gen Z insists on clear, jargon-free communication. They’re skeptical of fine print and upselling. As a result, successful insurance companies in 2025 focus on transparency and education, offering simple explanations, online tools, and video content that demystify the product.
Gen Z is forcing the life insurance industry to modernize—not just technologically, but culturally. They’re demanding speed, transparency, values alignment, and financial empowerment. Insurers that adapt to these new expectations are poised to capture the loyalty of a generation that’s just getting started.