Why Are Gen Y & Gen Z Buying Life Insurance Earlier Than Gen X?

Gen X Had Cheap Houses, Gen Y and Z Got Debt. Lots of It!

Gen X loves to tell stories about buying their first house for less than the cost of a deposit needed for an apartment today. In NZ Millennials and Gen Z just can’t get those deals. Instead, they’ve got massive student loans, rent that rivals a mortgage, and credit cards interest at 20%.

Debt is an enforced lifestyle accessory for many born at the time Gen X were buying property. That’s why younger people are getting serious about life insurance. It’s not about fear of dying young; it’s about making sure their mountain of debt doesn’t avalanche onto their parents, partners, or progeny. Different era, different pressures.

Why Waiting Until 40 Is a Financial Own Goal

Gen X could afford to shrug off life insurance until midlife because wages kept pace with costs and housing was affordable on a single salary. This means that life insurance could be lower. But today, waiting until your 40s is financial self-sabotage. By then, you’re paying higher premiums, dealing with health niggles, and trying to cover bigger liabilities. Gen Y and Gen Z are looking at the maths and realising: the earlier you start, the better. Life insurance isn’t just a safety net — it’s an investment in certainty. The younger you buy insurance the cheaper it is and with a level life policy it can remain affordable, right to the end.

Lock It In Young: The Secret to Lower Premiums

What Gen X missed while enjoying their disposable income: insurance companies love you more when you’re young. Lower premiums, easier approvals, fewer invasive medical checks mean it’s a no-brainer. By signing up early, Millennials and Gen Z lock in rates that Gen X can only dream of. It’s the same as locking in a cheap fixed-rate mortgage before interest rates spike - smart, strategic, and future-focused. Younger generations are catching onto this, treating insurance less like a grudge purchase and more like a financial power move. The most common call we get from Gen X: I can't afford my insurance premiums but I still need the cover.

Apps, Podcasts, and TikTok: Financial Literacy on Speed

Gen X learned about money from bank brochures, TV ads and “just work harder” advice. Gen Y and Gen Z have got TikTok explainers, budgeting apps, podcasts, YouTube gurus, and online communities teaching them what it took Gen X a lifetime to learn the hard way. That financial literacy means they understand life insurance in a way Gen X didn’t until much later. Younger buyers see it as a tool, not a taboo. They’re talking openly about financial planning, emergency funds, and protecting loved ones - in 30-second soundbites. Call it oversharing, call it progress - but they’re ahead of the curve.

She’ll Be Right? More Like She’ll Be Broke

Gen X had the classic Kiwi “she’ll be right” attitude - but she often wasn’t. They rolled the dice on fate, figuring insurance was something you sorted once you were settled. There was a more robust social safety net back in the day that could help. Today’s generations have seen the safety net packed away, recessions, pandemics, rising living costs, and shaky job markets. They’re not waiting around for fate to test them. Millennials and Gen Z know bad luck isn’t personal, it’s inevitable - and insurance is how you cushion the blow. The “she’ll be right” shrug has turned into “better safe than sorry.” It’s less romantic, but a hell of a lot more practical.

Insurance as a Power Move, Not a Panic Move

For Gen X, buying life insurance was often a reaction to adulting: new baby, new mortgage, or some kind of health scare. It still is for many. It is a box to tick under duress. A reluctant purchase imposed unfairly. Millennials and Gen Z flip that script. They see insurance as a proactive choice - a flex. It’s about controlling their financial destiny, not scrambling to catch up when things go wrong. It's as obvious as investing in KiwiSaver early: you don’t wait for a crisis, you start before you need it. That shift in mindset is why younger generations are steps ahead of their parents.

The New Normal: Protecting Partners, Pets, and Side Hustles

Gen X saw life insurance as short-term, something you bought to cover young kids and mortgages. Millennials and Gen Z have expanded the definition of “loved ones.” Today it’s not just about spouses and children - it’s partners, pets, business partners, and even side hustles. Modern life looks different, and so does the safety net. Younger people aren’t waiting for the nuclear-family stereotype to kick in before they buy cover. Their lives are diverse - and their insurance reflects it. The insurance companies are also changing to reflect these attitudes.

Who’s Really Winning? Hint: It’s Not the Gen X Crowd

Gen X might laugh at Millennials and Gen Z for being “too cautious,” but the joke’s on them. By the time Gen X started buying insurance, they were already paying higher premiums and sometimes battling pre-existing conditions. Meanwhile, younger generations are playing the long game, locking in cheaper cover and building resilience into their finances. It’s not about paranoia, it’s about pragmatism. In a world of rising costs and uncertainty, Millennials and Gen Z are quietly stacking wins. Call it boring, call it overthinking - but in the end, they’ll be the ones laughing.

Ready to take the smarter path?

Millennials and Gen Z are proving that acting early pays off with lower premiums, stronger protection, and peace of mind Gen X only wished they had. Whether it’s covering debt, protecting your partner, or future-proofing your side hustle, the best time to start is now.

Get in touch with us today. From quote to claim, we're in your corner.

Cover Yours Ltd (FSP769531) and Marc Hamilton (FSP306046) are registered Financial Service Providers and you can search the register here. Marc Hamilton is a member of the FSCL Disputes Resolution Service. Cover Yours Ltd and Marc Hamilton’s disclosures can be found here or by emailing marc@coveryours.co.nz