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Key Points

A Policybazaar survey shows Gen Z is more inclined toward SIPs and stocks, while Millennials prioritize insurance products. The younger generation lags in insurance awareness but believes in early coverage. Both groups rely on digital sources for financial education. The findings highlight gaps in financial literacy despite evolving investment habits.

Key Points: Gen Z Favors SIPs While Millennials Prioritize Insurance Policybazaar Finds

  • Gen Z invests more in SIPs (19%) vs Millennials (14%)
  • Stocks favored by 15% Gen Z vs 13% Millennials
  • Only 19% Gen Z consider term insurance vs 35% Millennials
  • 78% Gen Z believe in buying health insurance before 30
3 min read

Gen Z shows more interest in SIPs, but Millennials prefer protection tools like health & term insurance: Survey

Survey reveals Gen Z leans toward SIPs and stocks, while Millennials focus on health and term insurance, highlighting generational financial priorities.

"Gen Z focuses more on investment tools like SIPs and stocks, while a higher percentage of Millennials prefer protection tools like health and term insurance – Policybazaar"

New Delhi, June 30

India's Gen Z is more inclined toward investment tools like SIPs (Systematic Investment Plans) and stocks, while a higher percentage of Millennials prefer protection tools like health and term insurance, highlighted a survey by Insurance aggregator Policybazaar.

The report also noted that Gen Z still lagging awareness and understanding of insurance products.

According to the findings, 19 per cent of Gen Z reported investing in SIPs, compared to 14 per cent of Millennials. Stocks were also more popular among the younger group, with 15 per cent investing in stocks, as against 13 per cent of Millennials.

However, when it comes to protection tools like insurance, Gen Z seems less involved. Only 19 per cent of Gen Z considered purchasing term insurance, much lower than 35 per cent among Millennials.

The report stated "Gen Z focuses more on investment tools like SIPs and stocks, while a higher percentage of Millennials prefer protection tools like health and term insurance"

The survey, conducted in May-June 2025 on 4,620 respondents across India, compared the insurance awareness and investment habits of Gen Z (18-28 years) and Millennials (29-43 years).

Health insurance, however, is the most considered insurance product for both groups, 61 per cent of Gen Z and 63 per cent of Millennials have either purchased or thought about purchasing it.

A major gap is seen in confidence levels. While Gen Z feels relatively confident in their understanding of health insurance (32 per cent very confident), they lack similar confidence in term insurance. In contrast, Millennials showed greater confidence in understanding term insurance products.

One positive trend among Gen Z is their belief in buying insurance early. About 78 per cent believe that the ideal age to get health insurance is before 30, compared to 44 per cent of Millennials. Similarly, 72 per cent of Gen Z feel term insurance should be bought before the age of 30.

The survey also found that both generations prefer online sources to learn about insurance. Gen Z leans heavily on YouTube (46 per cent) and shows a growing interest in using generative AI, while Millennials rely more on Google Search (40 per cent).

Still, half of all respondents said they weren't taught about insurance in school. Yet, 85 per cent of Gen Z and 75 per cent of Millennials believe it is important to teach insurance concepts at the school level.

While Gen Z's early investment habits reflect financial awareness, the gap in insurance education and understanding shows there is still a long way to go in building a financially secure and insurance-aware generation.

- ANI

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Reader Comments

P
Priya S
I'm Gen Z and this survey is accurate for me! I started SIP last year but still confused about term insurance. My parents keep telling me to get one but I don't see the urgency yet. Maybe after marriage 😅
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Rohit P
The education gap is concerning. Schools teach trigonometry but not basic financial literacy? 🤦‍♂️ We need personal finance as compulsory subject from 8th standard itself!
S
Sarah B
Interesting cultural difference - in US, most young people don't think about insurance until their late 20s. Good to see Indian Gen Z being more proactive about finances overall!
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Vikram M
As financial advisor, I tell all my young clients: SIP + term insurance is winning combo. You get wealth creation AND protection. Don't wait for "right time" - that medical emergency won't wait either!
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Kavya N
The YouTube learning trend is so true! I learned about mutual funds from finfluencers before my own father could explain it to me. But we need better regulation on financial advice there.
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Michael C
Working in India's insurance sector, I see this daily. Millennials buy policies after health scare, Gen Z after watching influencer video. Both approaches have flaws - need balanced financial planning.

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