A recent survey by Policybazaar has shed light on the financial preferences of India’s Gen Z and Millennials. The findings reveal a clear divide between the two generations when it comes to investment and protection tools. While Gen Z is more drawn to investment options like SIPs and stocks, Millennials tend to prioritize insurance products such as health and term insurance.
The survey, conducted in May-June 2025, gathered responses from 4,620 participants across India. It compared the financial habits of Gen Z (aged 18-28) and Millennials (aged 29-43). The results highlight a generational shift in mindset, with younger investors showing more enthusiasm for growth-oriented tools.
When it comes to SIPs, 19 per cent of Gen Z reported investing in them, compared to just 14 per cent of Millennials. Stocks also saw higher participation among Gen Z, with 15 per cent investing in them versus 13 per cent of Millennials. This suggests a greater appetite for market-linked instruments among the younger crowd.
But the picture changes when we look at insurance. Term insurance adoption is significantly lower among Gen Z, with only 19 per cent considering it. In contrast, 35 per cent of Millennials view term insurance as essential. The survey report clearly states, ‘Gen Z focuses more on investment tools like SIPs and stocks, while a higher percentage of Millennials prefer protection tools like health and term insurance.’
Health insurance, however, emerges as a common ground. It ranks as the most considered insurance product for both groups. About 61 per cent of Gen Z and 63 per cent of Millennials have either purchased or thought about purchasing health insurance. This indicates a shared recognition of the importance of health coverage, regardless of age.
Confidence levels tell an interesting story. Gen Z feels relatively sure about health insurance, with 32 per cent expressing high confidence in their understanding. But this confidence drops when it comes to term insurance. Millennials, on the other hand, show greater assurance in their grasp of term insurance products.
The survey uncovered a positive trend among Gen Z regarding insurance timing. A striking 78 per cent believe the ideal age to get health insurance is before 30, compared to just 44 per cent of Millennials. Similarly, 72 per cent of Gen Z think term insurance should be bought before hitting 30. This suggests a proactive approach to financial planning among younger earners.
Learning preferences also differ between the generations. Gen Z heavily favors YouTube (46 per cent) for insurance education and shows growing interest in generative AI tools. Millennials prefer Google Search (40 per cent) as their go-to resource. Both groups, however, share a common gap in formal education about insurance. Half of all respondents said they weren’t taught about insurance in school.
Despite this lack of formal education, most recognize its importance. About 85 per cent of Gen Z and 75 per cent of Millennials believe insurance concepts should be taught at the school level. This overwhelming consensus highlights the need for better financial literacy programs.
The survey paints a picture of a financially aware Gen Z that’s eager to invest but still catching up on insurance knowledge. Their early adoption of SIPs and stocks shows promise, but the gap in insurance understanding indicates room for growth. As these young investors mature, bridging this knowledge gap could be key to building a more secure financial future.