More than half of young adults have protection cover in place, according to research by Vitality.
The insurer also found around half of Generation X and Millennials, typically aged 44 or below, it surveyed would consider taking out life insurance, with significant interest in income protection (IP) and critical illness (CI) products.
Millennials, typically born from 1981 to 1996, were the most likely of the two groups to hold protection products (65%), but not by overwhelming margins.
Half (52%) said they had life insurance with one in four owning IP (23%) and CI (24%) while 16% said they had serious illness cover (SIC).
More than half (58%) Generation Z, often defined as people born from around 1997 to 2012, respondents said they had some form of protection cover, with 45% holding life insurance (45%), 23% IP, 16% CI and 11% SIC.
However, the younger cohort were more likely to consider taking out all three protection products with 58% of Gen Z open to life insurance compared to 49% of Millennials, with interest in income protection (36% and 32% respectively) and serious illness cover (25% and 23%) also strong.
The results came from consumer research carried out with Opinium with 2,000 participants in February – 384 were Gen Z and 578 Millennials.
Safeguarding financial wellbeing
The primary reason for considering protection was to safeguard the financial wellbeing of their loved ones among both Gen Z (31%) and Millennials (38%).
The research also found that 29% of Gen Z and 28% of Millennials were now prioritising long-term financial stability in response to the economic climate.
Affordability was cited by 28% of Gen Z and 40% of Millennials as the main barrier to buying protection.
They also wanted products that offer more than a payout, such as early intervention services – 22% of Gen Z and 24% of Millennials) and help staying healthy 25% and 22% respectively.
Vitality said the shift in mindset presented a clear opportunity for advisers to engage younger clients in meaningful conversations about their future.
VitalityLife CEO Justin Taurog said it was clear people wanted products that supported them throughout their lives, not just at the point of claim.
“This shift opens the door for a new approach in how we communicate protection, and advisers are uniquely placed to bridge the gap between this interest and action,” he said.
“By reframing protection as a proactive product, where members see value throughout the life of the plan, we can help a new generation see insurance as something that supports their goals and what matters most to them, not just their risks.”
