This Group, Surprisingly, Wants Life Insurance

Gen Z's interest in life insurance is rising due to economic insecurity, but many haven't acted. ​Credit unions can engage them by integrating life insurance offers into their digital banking experiences.

​By TruStage
A new study reveals that 39% of consumers plan to purchase life insurance in the next 12 months, and a high percentage of those people could be, surprisingly, Gen Z.
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TruStage spoke with CUToday.info about this growing non-interest income opportunity for credit unions, but added Gen Z will need a little push from cooperatives to secure this business.

Citing data from a 2024 LIMRA survey, Samantha Ziesemer, director of digital storefront product management at TruStage, said it’s a great time for Gen Z to consider life insurance, due to locking in a premium at a lower rate,
“This is a good opportunity for Gen Z, but, unfortunately, Gen Z may not be understanding this,” Ziesemer said. “An insurance trade association survey in 2023 showed a surprisingly high number of Gen Z respondents that said they were interested in buying life insurance, and were planning to buy it in the next five years. But when asked a follow-up question—‘Why haven't you?’—37% responded they just haven't gotten around to it. That's the problem.”
Ziesemer said the issue for credit unions is how do they position their life insurance offering in a way that is engaging with Gen Z, and so they better understand the different life insurance products available and consider taking the next step.

“We were surprised by the number of Gen Z who responded they were planning to purchase life insurance,” acknowledged Ziesemer. “When we think of younger demographics, there's kind of an oversimplification. We think, well, they're not thinking about their own mortality or legacy planning. This isn't going to be top of mind. But now we know it is.”

What is driving greater interest among Gen Z in purchasing life insurance over the last two years, Ziesemer said, is growing economic insecurity.

Top-Of-Mind Interest
“And it is reaching all the way down the younger demographics, all the way down to Gen Z,” she said. “So, it's not just the older generations that are feeling this insecurity around their economic status. That’s what's driving a lot of this top-of-mind interest in life insurance among Gen Z.”

TruStage is working with its credit union partners to help them understand that talking to Gen Z about life insurance through typical advertising channels, such as direct mail, is not the only answer.

“Credit unions need to meet their Gen Z members where they're at,” she said. “If you think about it, the vast majority of Gen Z are interacting with their credit union digitally, either through their mobile app or through their online banking platform. So, how do we position products that are going to resonate with Gen Z? How do we position that product in a way that it is visible and understood by Gen Z and encourages them to take that next step?”
 
That means interacting with them when they accomplish daily tasks, like checking account balances, transferring money or making a bill payment, Ziesemer said.

“It’s taking those opportunities and positioning life insurance products, at that point of engagement,” she reiterated.
Ziesemer said TruStage offers a solution that personalizes offers and services to credit union members.
“So, it's front and center when they're logging into their home banking. Life insurance is one of those offers that we promote,” she said. “Gen Z is in a prime position to get life insurance today. It’s really important now to try to educate them, to say, hey, before you have obligations in the future—kids, spouses, partners that you are looking to protect with a life insurance policy—now is the time to consider it. Do it while you're younger and get a better quote coming back.

“We think about life insurance as something you consider once you have those obligations,” continued Ziesemer. “But Gen Z has a prime opportunity to lock in a rate since they are younger, before they get all those obligations. Economically it makes much more sense.”

TruStage is DakCU’s System Partner. TruStage is a financially strong insurance, investment and technology provider, built on the philosophy of people helping people. We believe a brighter financial future should be accessible to everyone, and our products and solutions help people confidently make financial decisions that work for them at every stage of life. With a culture rooted and focused on creating a more equitable society and financial system, we are deeply committed to giving back to our communities to improve the lives of those we serve. For more information, visit trustage.com or contact George McDonald, DakCU’s Chief Officer of Strategic Services.