Despite 44% of employees with a group life insurance policy seeking coverage that moves with them when they change jobs, only 19% of life insurers currently offer this, according to research by the Capgemini Research Institute and LIMRA.
The World life insurance report 2026, which surveyed 6,176 individuals aged 18-39 across 18 markets, also found that despite 68% of respondents seeing life insurance as essential for a healthy financial future, current offerings do not align with their financial priorities.
Among respondents, barriers to purchasing life insurance were a misalignment with current stages in life (32%), along with high premium costs (28%), and lack of immediate benefits (25%). The majority want emergency financial support, wellness benefits or fertility treatment coverage instead.
A quarter are turning down life insurance due to confusing processes and complex jargon that make policies difficult to understand and use. Traditional triggers for purchasing it differ now, because 63% of respondents have no immediate marriage plans and 84% of both single and married people have no immediate plans to have a child.
More than half (59%) want direct digital engagement, but just 31% of insurers offer platforms that enable this. Three-quarters (77%) expect comprehensive, data-driven recommendations, but only 16% of insurers provide these at scale.
Samantha Chow, global leader for life insurance, annuities and benefits sector at Capgemini, said: “As the next generation accumulates wealth and pursues a less traditional life path, their expectations around financial protection are evolving. Life insurers need to demonstrate value to include near-term gratification, delivering tangible benefits that customers can access during their lifetime. Life insurers can bridge this gap by deploying innovative products and articulating their value in ways that resonate with tomorrow’s policyholders.”
Bryan Hodgens, senior vice president and head of LIMRA Research, added: “Our joint research shows that the price misconceptions, coupled with competing financial priorities, positions life insurance at a disadvantage with younger adults. Carriers must not only demonstrate the accessibility and affordability of life insurance but also need to reimagine the product to address younger adults’ current financial priorities while adapting to meet their future financial goals as they age.”
