The World Life Insurance Report 2026, released by the Capgemini Research Institute and LIMRA, highlights both an opportunity and a challenge for financial advisers.
Among the findings of its global survey are that while 68% of adults under 40 view life insurance as essential to their financial wellbeing, adoption remains low due to misaligned products, complex processes, and a lack of near-term value.
Authors of the report conclude that to close this divide and win the next generation, life insurers should focus on three core pillars of transformation:
- Innovate the product: Launch flexible solutions with living benefits at the core
- Empower the advisor: Equip agents with AI tools and customer insights for personalised guidance and modernise compensation models to attract the next generation of agents
- Forge strategic ecosystem partnerships: Embed life insurance into everyday experiences by seamlessly partnering with financial institutions, wellness companies, and HR platforms
The study reveals consumers under the age of 40 are delaying or skipping the traditional triggers for purchasing life insurance, stating that 63% have no immediate marriage plans and 84% of both single and married people have no immediate plans to have a child.
The report, which polled more than 6,100 people aged 18-39 across 18 markets – including Australia but not New Zealand – highlights a notable paradox as the great wealth transfer continues.
With millennials and Gen Z expecting an average inheritance of more than $100,000 each, life insurance remains an important destination for these funds.
In fact, 40% of under 40 adults rank life insurance and annuities as the third most important pillar for their inheritance investment plan, behind stocks and cash savings.
“As the next generation accumulates wealth and pursues a less traditional life path, their expectations around financial protection are evolving,” said Samantha Chow, Global Leader for Life Insurance, Annuities and Benefits Sector at Capgemini.
…life insurers can bridge this gap by deploying innovative products…
“The life insurance industry cannot rely solely on traditional death protection to sustain its future. Life insurers need to demonstrate value to include near-term gratification — delivering tangible benefits that customers can access during their lifetime.
“Fortunately, life insurers can bridge this gap by deploying innovative products and articulating their value in ways that resonate with tomorrow’s policyholders.”
Global life insurance executives told researchers that aging populations and rising longevity (64%), delayed life milestones (53%), and continued economic uncertainty (51%) are key drivers of their long-term strategies.
When asked about barriers to buying life insurance, younger consumers cite a misalignment with their current stage in life (32%), high premium costs (28%), and lack of immediate benefits (25%).
…price misconceptions, coupled with competing financial priorities, positions life insurance at a disadvantage…
Instead, state the report’s authors, younger adults want easy access to ‘living benefits’ that support their changing life journeys, seeking everything from wellness rewards for healthy behaviours to coverage for fertility treatments.
“Carriers need a different playbook when marketing life insurance to the younger generations,” said Bryan Hodgens, Senior Vice President and Head of LIMRA Research.
“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.”