Mumbai, 26th May, 2025: Despite being digital natives, India’s working Gen Zs are emerging as a surprisingly pragmatic generation—especially when it comes to financial protection. A new study by Tata AIA Life Insurance, conducted with NielsenIQ, reveals that term insurance has become the top financial priority for this cohort, driven by a strong desire for long-term security, affordability, and simplicity. 5q25r
Titled ‘New Age Habits, Traditional Values: Gen Z’s Approach to Financial Planning’, the study surveyed working Gen Z individuals aged 21–28 years (born between 1997-2012) and uncovered a powerful insight: this generation is not just tech-savvy—they are protection-savvy. Gen Zs are embracing term insurance not as a backup, but as the foundation of their financial wellness strategy.
Key Insights: Gen Zs Prioritize 3 Pillars of Protection
1. Term Insurance Takes Centre Stage
With rising awareness around financial risk and affordability, term plans have emerged as Gen Zs’ top choice.
- 31% of Gen Z respondents plan to purchase term insurance, the highest among all life insurance categories available to them.
- 1 in 4 prefer a Term + Wealth combo, blending protection with savings.
- Notably, 57% of Gen Z intenders are willing to invest over ₹2,000 per month, showing a stronger intent than current policyholders in this cohort.
2. Early Retirement Planning Gains Ground
Gen Zs are also fast-tracking the retirement conversation. With growing interest in the F.I.R.E. (Financial Independence, Retire Early) movement, many are balancing present-day needs with a long-term view.
- 18% are already considering retirement and pension plans, a notable shift from the wait-and-watch approach of previous generations.
3. Health & Wellness as Key Decision Factors
For Gen Zs, financial products without health benefits are a no-go.
- 60% of respondents prioritize physical health offerings when choosing a life insurance provider.
- Male Gen Zs (65%) place a higher emphasis on wellness benefits compared to female Gen Zs (54%).
Girish J Kalra, Chief Marketing Officer, Tata AIA Life Insurance, said:
“Our research underscores some vital insights: while Gen Zs are highly digital, they continue to rely on time-tested financial solutions such as term insurance for long-term security. With a focus on financial protection, health and wellness, and early retirement planning, Gen Zs are actively preparing for their future. At Tata AIA, we are committed to providing tech-enabled, accessible insurance solutions that meet the evolving needs of this forward-thinking generation.”
Traditional Values Meet Digital Habits
Even as Gen Zs swipe, scroll, and shop online, financial trust matters a lot.
- 53% rely on agents or bank advisors for insurance purchases, with the rest being through online and other channels.
- At the same time, 25% seek financial advice on social media, showing the growing influence of digital creators and content.