"Traditional triggers for life insurance are no longer driving demand by younger adults......."

A growing number of younger adults are deciding that life insurance is not for them, reshaping the way financial advisors must guide clients, a new report reveals.

While 68% of consumers still consider life insurance essential to financial wellness, under-40s often see policies as a poor fit. Around a third say that coverage doesn’t align with their stage of life, 28% cite affordability concerns, and another quarter feels that policies offer little immediate benefit.

According to the latest World Life Insurance Report from Capgemini and LIMRA, traditional triggers for life insurance are no longer driving demand. Sixty-three percent of younger adults have no near-term plans to marry, and 84% are delaying or opting out of parenthood.

However, life insurance does still play a role in estate planning. As Millennials and Gen Z expect to inherit an average of $106,000 each, life insurance ranks just behind stocks and cash as a preferred tool for intergenerational wealth transfer.

Survey respondents are keen to see tangible value in their life insurance policies while they are alive, with a strong appetite for ‘living benefits’ such as fertility treatment support, wellness incentives, or access to emergency funds.

“As the next generation accumulates wealth and pursues a less traditional life path, their expectations around financial protection are evolving. The life insurance industry cannot rely solely on traditional death protection to sustain its future. Life insurers need to demonstrate value to include near-term gratification — delivering tangible benefits that customers can access during their lifetime,” says Samantha Chow, global leader, Life, Annuity and Benefits Sector at Capgemini.