VettaFi: “How Millennial, Gen Z Needs Are Shaping Practice Management”
VettaFi, Oct. 8, 2025 — “As younger generations are more often delaying life milestones, like marriage, parenthood and homeownership, advisors may need to adjust their conversations with millennial and Gen Z clients,” writes reporter Danielle Walker in today’s issue of VettaFi. “They are dealing with their own unique challenges and may hold different ideals around work and fulfillment that can impact the way advisors manage their practices.”
For insight, Danielle turned to Marguerita Cheng, CEO of Blue Ocean Global Wealth.
“It’s important to explain to people what their benefits are,” Marguerita said. “Gen Z and Millennials want to chart their own course and be a part of the gig economy, but it’s important to discuss cash reserves with them and also insurance for protection and risk management.”
Noting life insurance and rental insurance as priorities, a recent study by IT services and consulting company Capgemini revealed that consumers under 40 are “delaying or skipping the traditional triggers for purchasing life insurance,” a release for the report said.
After polling over 6,100 people aged 18 to 39, the company found that one of the biggest barriers to younger consumers purchasing life insurance was a “misalignment with their current stage in life” (32%), followed by insurance premium costs (28%).
Meanwhile 53% of life insurance executives who were polled for the report (200 senior executives across 18 markets), said that delayed life milestones were a major factor that shaped their long-term strategies for under-40 consumers.
“Under 40s seek financial tools that deliver value throughout their lives — not just at death,” the report said. “Living benefits can help evolve traditional life insurance from a product that customers buy and forget into an active financial tool that promotes financial wellness and helps them live well for longer.”
“Financial flexibility around life events, support for wellness, and aid during a critical illness are the living benefits under 40s appreciate the most,” the report said.
Marguerita Cheng, CFP® Pro, CEO, Blue Ocean Global Wealth
Higher Debt, Financial Education Needs
From Cheng’s perspective, we are living in a period where “the need for life insurance is greater than ever, because of higher student loan debt and mortgage debt.”
“But we are in a time where people may not understand (life insurance), so they think they don’t need it,” she added.
“Ownership of life insurance probably is on the decline because younger generations are reaching these milestones later on, or they are choosing not to have these life events,” Cheng said.
“Some people don’t understand what their job benefits are. They may say, ‘I’m not married, so I don’t need life insurance.’ Maybe you need it, maybe you don’t. But if you were to leave this world, is there anyone or any people who are depending on you? You might not be married, but particularly for people who are first-generation college grads, you may have people in your life who you love who may still need assistance,” Cheng said.
Research shows that younger adults (millennials and Gen Z) often greatly overestimate the costs of life insurance, by as much as 10 to 12 times the actual cost of a policy, a survey by nonprofit associations LIMRA and Life Happens found.
The 2025 insurance study revealed that one of the top reasons young adults don’t own life insurance (or own more coverage), is due to perceived costs. Nearly half of millennial respondents (48%), and 39% of Gen Z respondents, noted costs as a concern.
“There appears to be some ‘too good to be true’ thinking that complicates their purchase decisions,” said Bryan Hodgens, senior vice president, head of LIMRA Research, in a statement for the survey release. “In a separate qualitative LIMRA study, even when young adults were presented with a true median cost of an insurance policy, some participants still doubted us. This remains one of the biggest challenges for our industry to overcome — convincing consumers that life insurance is far more affordable than they realize.”