Milestones Such as Marriage and Parenthood Are Delayed for Millennials and Gen Z, Leading to Skipping Life Insurance

(SeaPRwire) –   As housing costs rise and wages fail to keep pace with inflation, millennials and Gen Z are postponing significant life events such as homeownership and starting a family. In many instances, they are deferring these milestones to focus on present experiences like travel or major discretionary spending.

This trend is influencing other crucial financial choices. A September report from Capgemini, shared exclusively with , indicates that while close to 70% of adults under 40 consider life insurance vital for long-term financial health, the available products often do not match their current financial goals—leading some to skip coverage entirely.

Samantha Chow, Capgemini’s global lead for life insurance, annuities, and benefits, explained to that younger generations might only purchase life insurance if it is extremely inexpensive or free. The idea of paying for a policy when they cannot yet afford a home seems illogical to them.

“They’re getting married later, having children later, not [making] major financial commitments like [buying] a home,” she stated. “They are more inclined to increase contributions to retirement accounts like a 401(k) or open personal investment accounts to set aside extra funds.”

The research, a collaboration with LIMRA, surveyed over 6,100 individuals aged 18-39 and 200 senior insurance executives across 18 markets, incorporating macroeconomic forecasts from Oxford Economics. It found that 63% of these consumers have no near-term plans to marry, and 84% of all respondents, whether single or married, have no immediate plans for children.

Gen Z and millennials want ‘living’ benefits

Conventional life insurance is a financial agreement where an individual pays regular premiums to a company. In exchange, the insurer pledges to provide a death benefit to the policyholder’s chosen beneficiaries upon their passing. These funds are typically intended for expenses like funeral costs, outstanding debts, daily living costs, education, or a mortgage.

However, many policies include optional “living benefits” that the policyholder can access while alive. One example is an accelerated death benefit for a terminal illness diagnosis. Another key feature is cash value access, which permits borrowing or withdrawals from the policy during one’s lifetime, potentially enabling major purchases like a home. Chow noted she used her own policy’s cash value to buy her first house.

“I bought my first life policy at age 21. I paid nearly cash for my first home,” she said. “I simply withdrew from the cash value. But this isn’t explained to people.”

This highlights a core issue: many younger people are unaware or do not fully grasp that these living benefits are an option for them.

“The basic concept of paying a premium to build cash value isn’t overly complex,” Chow remarked. “The complexity lies in the details: how and when you can use it, what you can use it for, the consequences of different actions, and how it affects your future. That’s where it becomes confusing.”

Despite some insurers offering these benefits, the Capgemini study found one in four consumers still reject life insurance because the process is too perplexing and the specialized terminology makes policies hard to comprehend and utilize.

The life insurance industry needs to change

With the $124 trillion Great Wealth Transfer underway, millennials and Gen Z anticipate average inheritances of $106,000 per person. Capgemini suggests this makes life insurance a key potential repository for these assets. Among survey respondents, 40% ranked life insurance and annuities as the third-most important destination for an inheritance, following stocks and cash savings.

Chow, a 25-year insurance industry veteran, asserts that to serve generations with distinct saving, investing, and financial mindsets, the life insurance sector must evolve.

“We have failed you countless times,” Chow said of the industry. “We neglect to educate you during the critical period when you are selecting your benefits.”

She also contends that life insurance must transform into a more adaptable financial instrument, similar to savings or investment products.

“It must function as a comprehensive financial tool. It needs to address needs like critical illness coverage, home buying, and future college tuition. It has to be a versatile, all-in-one product that adapts as your life evolves.”

A version of this story was originally published on .com on September 15, 2025.

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