Term insurance has become the top financial priority for Gen Zs, driven by a strong desire for long-term security, affordability, and simplicity, a study has said.

According to the study conducted by Tata AIA Life Insurance and NielsenIQ, titled ‘New Age Habits, Traditional Values: Gen Z’s Approach to Financial Planning’, 31% of Gen Z respondents plan to purchase term insurance, the highest among all life insurance categories available to them. Further, it said that 1 in 4 prefer a Term + Wealth combo, blending protection with savings.

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Notably, 57% of Gen Z intenders are willing to invest over Rs 2,000 per month, showing a stronger intent than current policyholders in this cohort.

The study surveyed working Gen Z individuals aged 21–28 years (born between 1997-2012). Gen Zs are embracing term insurance not as a backup, but as the foundation of their financial wellness strategy.

Gen Zs are also fast-tracking the retirement conversation. With growing interest in the F.I.R.E. (Financial Independence, Retire Early) movement, many are balancing present-day needs with a long-term view, it said.

The study revealed that 18% are already considering retirement and pension plans, a notable shift from the wait-and-watch approach of previous generations.

For Gen Zs, financial products without health benefits are a no-go. 60% of respondents prioritize physical health offerings when choosing a life insurance provider.

Male Gen Zs (65%) place a higher emphasis on wellness benefits compared to female Gen Zs (54%).

53% rely on agents or bank advisors for insurance purchases, with the rest being through online and other channels. At the same time, 25% seek financial advice on social media, showing the growing influence of digital creators and content.