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.
