Term insurance has become the preferred financial product for 31% of working Gen Z individuals in India, according to a recent study by Tata AIA Life Insurance in partnership with NielsenIQ.
The survey, which focused on respondents aged 21–28, reveals a clear shift among young adults toward financial protection, with term insurance standing out among life insurance options.
The report highlights that Gen Z is gravitating toward term plans for their straightforward structure, affordability, and promise of long-term security.
The study also found that 57% of those considering term insurance are prepared to invest over INR2,000 ($24) per month.
“Despite being digitally savvy, Gen Z continues to place trust in reliable, traditional financial tools like term insurance for long-term stability,” said Tata AIA Life Insurance chief marketing officer Girish J Kalra, reported CNBC.
Other key findings include:
- 18% of those surveyed are already considering pension and retirement solutions
- 60% of respondents consider health benefits a key factor when choosing life insurance, with interest notably higher among men (65%) than women (54%)
- Gen Z continues to rely heavily on conventional financial guidance—53% prefer purchasing insurance through agents or bank advisors. At the same time, 25% also turn to social media for financial advice
The survey spanned eight cities across both metro and non-metro regions, with a balanced gender representation and an average respondent age of 25.