As India’s financial ecosystem becomes more digitized and self-directed, a generational split is emerging—not in earnings, but in how young adults protect themselves. A new survey by Policybazaar reveals that while Gen Z leans into investment options like SIPs and equities, Millennials are increasingly prioritizing term life and health insurance to shield themselves from medical and financial risks.
The nationwide survey, conducted among 4,620 respondents aged 18–43, highlights that 35% of Millennials are considering term insurance, compared to only 19% of Gen Z. Similarly, 63% of Millennials already own health insurance policies, marginally ahead of the 61% of Gen Z.
A Protection Mindset Among Millennials
Millennials—individuals in the 29–43 age bracket—are showing greater awareness and ownership of term and health insurance. Forty-five percent say they understand term insurance well, a figure that drops to just 25 percent among Gen Z respondents.
This maturity, experts say, is likely influenced by increasing family responsibilities and rising medical costs. “Millennials are now entering a life stage where financial stability is measured not just by savings, but by safety nets,” said a financial analyst.
Gen Z: Confident, But Underinsured
Gen Z’s lower engagement with term insurance doesn’t reflect disinterest—just a gap in understanding. While 78% of Gen Z believe health insurance should be secured before age 30, and 72% say the same about term plans, few have acted on this conviction.
This group’s digital-first approach—using YouTube and AI tools for financial research—reflects enthusiasm but also the need for targeted awareness campaigns. Despite their tech-savviness, the lack of structured financial education means many are unaware of the implications of being uninsured.
Insurance Awareness Needed in Schools
A promising signal: 85% of Gen Z and 75% of Millennials support integrating insurance education into school curricula. With both groups calling for early financial literacy, insurers and educators have a growing mandate to introduce protection planning in the foundational years.
Conclusion
As health emergencies and income uncertainties increase, Millennials appear better prepared—at least from an insurance standpoint. For Gen Z, the challenge lies not in attitude, but in action. Bridging this protection gap could mean the difference between future resilience and future risk.