June 30, 2025
NEW DELHI – A nationwide survey by Policybazaar has revealed stark generational differences in how Indians approach insurance—highlighting growing confidence, early adoption, and a digital-first mindset among Gen Z (aged 18–28), in contrast to more responsibility-driven choices by Millennials (29 and above).
The survey highlighted that despite their younger age, Gen Z respondents reported higher confidence in understanding health insurance. Around 70% of them expressed confidence, with 32% claiming to be “very confident.” This is marginally higher than the 67% recorded among Millennials.
However, the pattern reversed for term insurance. Only 25% of Gen Z said they were very confident in understanding term plans, compared to 45% of Millennials. Experts suggest that the difference may stem from age-linked responsibilities such as family care, home loans, and long-term financial commitments that typically influence Millennials’ term insurance choices, the survey noted.
Health insurance continues to top the purchase consideration list across both groups, with 61% of Gen Z and 63% of Millennials showing intent to buy. However, when it comes to term insurance, the generational divide widens—only 19% of Gen Z are currently considering term cover, compared to 35% of Millennials.
The data suggests that while health remains a universal priority, Gen Z is still warming up to life insurance products like term cover, often seen as relevant in later stages of life.
The survey reveals a significant shift in Gen Z’s financial mindset. Insurance now ranks just behind SIPs, stocks, and gold in their investment mix—well ahead of more speculative options like cryptocurrency. For Millennials, health insurance and gold are equally preferred (14% each), reflecting a more traditional, security-oriented approach to wealth planning.
One of the most notable findings is Gen Z’s strong inclination toward early financial planning. Over half (52%) of Gen Z respondents believe that health insurance should be purchased between the ages of 18–25, and 45% say the same for term insurance. Among Millennials, those numbers fall to 22% and 26% respectively.
“This shows a clear generational shift in financial maturity,” said a Policybazaar spokesperson. “Gen Z is not waiting for life milestones like marriage or parenthood to consider protection plans—they’re acting early and decisively.”
The survey also underlines the centrality of digital platforms in shaping insurance decisions. While Google Search remains the top research tool for Millennials (40%), Gen Z shows a clear preference for YouTube (46%), favoring explainer videos and short-form content.
Notably, 23% of Gen Z respondents are already using Generative AI tools for research, marking a tech-savvy shift in behavior.