Mumbai: India’s youngest earners are embracing a bold blend of digital habits and traditional financial planning, with term insurance emerging as a top priority for working Gen Z professionals.
A recent study by Tata AIA Life Insurance and NielsenIQ, titled “New Age Habits, Traditional Values: Gen Z’s Approach to Financial Planning,” highlights that Gen Zs are placing long-term protection at the heart of their wealth strategies.
Gen Z Prefer Term Insurance
Contrary to assumptions about impulsive or short-term behavior, the report reveals that 31% of Gen Z respondents intend to purchase term insurance—more than any other form of life insurance. A growing number are also opting for hybrid protection-plus-savings solutions, such as Term + Wealth plans.
Importantly, 57% of Gen Zs who plan to buy term insurance are prepared to invest over ₹2,000 per month, signaling a strong, proactive approach to financial security.
“While Gen Z is digitally driven, they remain rooted in tried-and-true financial choices like term insurance,” said Girish J Kalra, Chief Marketing Officer at Tata AIA Life Insurance.
“They are focused on protection, early retirement, and health-led financial wellness—Tata AIA is committed to serving these needs with digital-first yet dependable solutions.”
Key Findings from the Tata AIA Life Insurance and NielsenIQ Study:
- Term Insurance Takes the Lead: Gen Z prefers affordable, simple, and long-term financial coverage.
- Early Retirement Goals: 18% have already begun exploring retirement and pension plans, aligning with F.I.R.E. (Financial Independence, Retire Early) trends.
- Wellness as a Priority: 60% of Gen Zs emphasize physical health features in their insurance, with male Gen Zs (65%) leading this preference.
Despite their digital fluency, Gen Zs still place significant trust in human advice. 53% of them prefer to buy insurance through agents or banking advisors, while 25% look to social media and financial influencers for guidance – indicating a dual-channel decision-making approach.
This new generation is transforming the financial landscape. While rooted in modern lifestyles, Gen Z’s commitment to term insurance and long-term planning reflects a forward-looking maturity that could redefine India’s insurance market.
