Generation Z, now aged 18'28, have prioritized immediate financial pressures'like student loans, rent, or building a career'over life insurance.
However, for Gen Zers with dependents, partners, or financial responsibilities, term life insurance is a low-cost, essential tool to secure their loved ones' future.
A 2025 study by New York Life Insurance reveals that 64 percent of Gen Z adults lack any life insurance, the highest uninsured rate among generational groups, even among those with partners, young children, or family cosigned debts.
Some Gen Zers are starting families, with childcare costs averaging $10,000, $15,000 per child annually in 2025.
Financial advisors in 2025 recommend life insurance coverage of 7'12 times your annual income to account for rising costs and potential long-term needs. For Gen Zers without dependents, a smaller policy ($100,000, $250,000) can cover debts or funeral costs ($10,000, $15,000 in 2025) to avoid burdening family.
Term life insurance offers pure protection for a set period, usually from 10 to 20 at a fraction of the cost of whole life or universal life policies. Buying now'while young and healthy'locks in the lowest premiums, saving thousands over time.
Based on quotes from leading insurers, here are approximate monthly premiums for a healthy non-smoker in 2025 for a 10-year term life policy (rates vary by health, location, and insurer, so shop around):
Men, age 20: $10, $14 for $250,000; $18, $24 for $500,000.
Women, age 20: $9, $12 for $250,000; $16, $22 for $500,000.
Men, age 25: $12, $16 for $250,000; $20, $28 for $500,000.
Women, age 25: $10, $14 for $250,000; $18, $25 for $500,000.
Men, age 28: $14, $18 for $250,000; $24, $32 for $500,000.
Women, age 28: $12, $16 for $250,000; $20, $28 for $500,000.
