A Generational Shift in Timing
For earlier generations, adulthood milestones such as marriage, buying a home and becoming a parent were closely linked to the decision to purchase life insurance. Those events created obvious financial dependents and liabilities. Today’s younger adults, however, are reaching those milestones much later — or skipping them entirely — and it’s transforming the life insurance market.
Millennials are now entering their 30s and 40s, and Gen Z is moving into their late 20s. Yet marriage rates remain historically low, first births are at older ages than ever before, and home ownership has been delayed by student debt and housing costs. Without the triggers of spouse, children or mortgage, the urgency to buy life insurance is muted.
How This Affects Insurance Uptake
Traditionally, insurers and financial planners promoted life insurance as a way to protect loved ones and secure a family’s financial future. But when individuals don’t yet have dependents, they often view premiums as an avoidable expense. Even those who eventually plan to marry or have children are deferring coverage until later in life. 
This shift is showing up in lower participation rates in individual life insurance policies among younger adults compared to prior generations at the same age. Many are relying on minimal coverage provided by an employer, or forgoing it entirely. Others prefer to direct spare income into savings, investment apps or paying down debts.
Changing Attitudes Toward Risk
Alongside delayed milestones, cultural attitudes toward insurance and risk have evolved. Millennials and Gen Z are digital-first, comparison-shopping online and skeptical of traditional financial products. They’re more likely to prioritize health insurance, disability coverage or flexible investment products over a long-term life policy.
In some cases, there’s also a perception that life insurance is outdated, overly complex or designed for older adults with families. As a result, insurers face a challenge not only in timing but in messaging — how to make life coverage relevant for people who see themselves as mobile, independent and without obligations.
Financial Pressures and Competing Priorities
Student loan repayments, rising rents, and a high cost of living mean discretionary income is scarce for younger workers. For many, building an emergency fund or investing in skill development feels more pressing than paying premiums for a policy whose benefits may seem remote. Even when life insurance is inexpensive at younger ages, it competes with more immediate financial goals.
The Long-Term Implications
From a financial planning perspective, delaying life insurance can be costly. Premiums generally rise with age, and health changes can make coverage more expensive or harder to obtain. Those who wait until they have dependents may find themselves paying much more.
For insurers, the trend poses both a threat and an opportunity. The threat is shrinking participation among a large demographic; the opportunity lies in designing new products, simpler sign-up processes, and digital experiences that speak to younger customers’ lifestyles. Some companies are experimenting with flexible term policies, subscription-style premiums and bundling life coverage with other financial tools.
Bridging the Gap
Financial educators suggest that even single adults can benefit from some level of life insurance — for example, to cover funeral costs, co-signed loans or to lock in low rates before health issues arise. But the challenge is making that case compelling to people who feel financially stretched and unanchored to traditional milestones.
A Generational Wake-Up Call
The delay or avoidance of traditional life milestones among Millennials and Gen Z is reshaping the entire financial ecosystem, from insurance to retirement planning. If these patterns persist, life insurers may need to rethink not just products and pricing but the very narrative of why coverage matters.
