The survey reveals a growing curiosity, early purchase consideration and a digital-first behaviour among India’s younger cohort – the Gen Z – with distinct patterns emerging between health and term insurance
Policybazaar’s latest survey on Insurance Awareness Day 2025, observed interesting insights on how insurance understanding and policy preferences differ across Gen Z (18-28) and Millennials (29 and above).
Conducted pan-India among 4620 respondents, the survey reveals a growing curiosity, early purchase consideration and a digital-first behaviour among India’s younger cohort – the Gen Z – with distinct patterns emerging between health and term insurance.
Gen Z more confident with health insurance, Millennials in term
Despite being younger, Gen Z reported greater confidence in understanding health insurance plans. As many as 70% of Gen Z respondents are confident about their understanding of health insurance, with 32% being very confident, which was slightly higher than that for Millennials at 67%.
Gen Z more confident with health insurance, Millennials in term
Despite being younger, Gen Z reported greater confidence in understanding health insurance plans. As many as 70% of Gen Z respondents are confident about their understanding of health insurance, with 32% being very confident, which was slightly higher than that for Millennials at 67%.
When asked about the purchase consideration of insurance products, health insurance stood out as the most commonly considered product across Gen Z and Millennials at 61% and 63%, respectively.
While the levels might be similar for both, the high intent among Gen Z reflects an early sense of urgency around healthcare planning. Yet again, term insurance consideration stood at 19% for Gen Z and significantly higher at 35% for Millennials, indicating the varying life stages and responsibilities.
Insurance finds firm footing in Gen Z’s financial priorities
In terms of current investments, insurance is no longer an afterthought. It’s fast becoming part of Gen Z’s investment mix ranking just after SIPs, stocks and gold. It’s also interesting to see new categories like crypto figuring in their financial planning even as their preference levels remain lower.
This indicates that for Gen Z, insurance is rising fast as a key financial tool.
Health is gold – quite literally – for Millennials. The data shows that health insurance and gold are equally preferred by them at a strong 14%. The figures indicate that for Millennials, the tilt toward value protection and tangible security is higher as health and term insurance are their key investments.
Gen Z is all for early financial planning
One of the most striking insights from the survey was how decisively Gen Z outpaced Millennials in recognising the importance of starting insurance early. When asked about the ideal age to buy insurance, 52% of Gen Z respondents selected 18–25 as the right time for health insurance, and 45% did the same for term insurance. In contrast, only 22% of Millennials said health insurance should be purchased in that age range, and just 26% said the same for term cover.
This sharp difference highlights a generational shift in financial maturity. Gen Z is not waiting for life- stage milestones to prioritise protection. Whether it’s the influence of pandemic-era realities or rising exposure to digital financial content, the younger cohort is thinking ahead and acting sooner.
From searching to signing up, Gen Z and Millennials go the digital way
When it comes to insurance, digital is the common language across both generations. YouTube emerged to be the strongest preference among Gen Z respondents at 46% for research, indicating inclination towards explainer videos or short form video content for better clarity, while most Millennials prefer the good old Google search at 40%.
Quite interestingly, 23% of Gen Z are using Gen AI for research showing their keeping up to date with technology. The findings show a clear shift towards speed, clarity and control, all of which they find through digital channels. From discovering benefits to completing the final purchase, the entire journey is increasingly self-led and digital-first.
Sarbvir Singh, Joint Group CEO, PB Fintech, says, “What stands out for us is that the new-age consumer is digitally fluent and financially aware in ways we didn’t see earlier. Their willingness to consider insurance early, seek clarity through modern tools like GenAI, and act before they hit traditional life milestones speaks volumes about a mindset shift.
As insurance becomes an early decision, the ask from the industry is to build products that make insurance more relevant and relatable. We need to lead with content that explains, platforms that guide and products that fit neatly into their criteria.”