Why Millennials and Gen Z Are Choosing Life Cover and Delaying Marriage and Kids

A growing number of UK adults under 40 are postponing traditional life milestones, with far-reaching implications for financial planning and insurance uptake. Capital for Life explains how younger generations are reshaping the market and what insurers must do to keep pace.

Recent research from Capgemini-LIMRA highlights a striking trend: 63% of adults under 40 in the UK have no immediate plans to marry, and 84% are not planning to have children in the near future. These demographic shifts are changing the way young people think about life insurance, inheritance, and long-term financial security.

While life insurance remains a priority, ranking third among inheritance planning preferences, today’s younger adults are increasingly seeking policies with “living benefits”, such as access to funds in case of illness or critical life events, and expect digital-first engagement that mirrors the convenience of banking apps and fintech platforms. Yet only 19% of insurers currently offer portable coverage that travels with a policyholder across jobs or countries, leaving a significant gap in the market.

“Life insurance has historically been pitched as a safety net for families after death, but under-40s are reimagining its purpose. They want flexibility, tangible benefits while alive, and digital-first experiences that fit a mobile, career-driven lifestyle. This includes coverage for critical illness, income protection, and portable policies that move with them if they change jobs or relocate internationally.

The industry must recognise that life milestones like marriage and children are no longer the dominant motivators. Many young adults are prioritising financial freedom, travel, and investments over traditional inheritance concerns. Insurers that fail to modernise risk losing relevance and engagement with this audience.

For UK consumers, this shift means being proactive about understanding policy options that align with modern living. Portable coverage, living benefits, and digital access have now become necessities for under-40s seeking meaningful protection. Insurers can respond by offering modular products, AI-driven customer support, and seamless mobile management.

Ultimately, the goal is simple: provide protection that fits life as it is lived today. By doing so, the industry not only meets demand but strengthens long-term resilience and trust with a generation that values flexibility, convenience, and tangible outcomes,” says Finance and Insurance Expert Carlton Crabbe from Capital for Life.

Key Implications for UK Consumers and Insurers

• Living Benefits Are Critical – Policies that allow access to funds for medical emergencies, critical illness, or long-term care are increasingly attractive.
• Portability Matters – Younger adults move jobs and countries more frequently; policies must travel with them seamlessly.
• Digital Engagement Is Expected – Mobile apps, online claims, and AI-driven advice are now standard expectations.
• Inheritance Planning Evolves – While fewer are planning traditional families, younger adults still want to secure wealth for parents, siblings, or charities.
• Education and Guidance – Many under-40s underestimate the cost of delayed planning; accessible advice can improve uptake and protection.

The under-40 demographic represents both a challenge and an opportunity. Insurers who adapt to flexible, digitally-enabled policies that reflect modern lifestyles will not only capture market share but help this generation achieve financial security on their terms.