For decades, life insurance in India has been a rite of passage a financial milestone that followed life milestones: marriage, children, home ownership. But times have changed.

According to the World Life Insurance Report 2026, while 68% of Indians under 40 still believe life insurance is important, but most aren’t buying it.

And that’s a problem.

Life insurance’s share in investment portfolios has dropped by 23% over the past 15 years. Meanwhile, equities and digital investments have surged.

No marriage, No kids, No policy

The traditional triggers for buying life insurance are fading. Among Indian respondents aged under 40:

• 63% have no immediate plans to marry
• 84% aren’t planning to have children soon

Without these classic motivators, life insurance has lost its urgency. In its place? SIPs, stock trading apps, crypto, and wellness subscriptions. Young adults are choosing financial tools that feel more alive, not those that only kick in after death.

Redirection, not rejection

Young people aren’t rejecting insurance. They’re asking: “Why should I pay into something I may never see?” They demand that it be reinvented.

What they want:

• Living benefits they can use today, not just tomorrow after they die.
• Portability when switching jobs (44% want it, only 19% of insurers offer it).
• Digital-first engagement – 60% want it, but only 31% of insurers deliver.
• Simplified language and experience – one in four under-40s cites complex jargon as a reason to avoid life cover.

The new life insurance wishlist

The report lays out what younger consumers really want from insurers, and it’s a big departure from the traditional model.

• Flexible policies that evolve with life stages
• Health-linked incentives: lower premiums for active lifestyles
• Family planning coverage: fertility treatments, childcare support
• Emergency fund access: micro-loans or partial payouts
• Gamified apps: to build financial literacy and engagement
• Portability: keep your (group) life coverage when you switch employers

This isn’t about flipping one switch. It’s about transforming the experience from static to dynamic.

Inheritance is coming. Are insurers ready?

In the next 20 years, millennials and Gen Z are expected to inherit over USD 106,000 per person globally. In India, this wealth transition will be even more pronounced.

Interestingly, 40% of young consumers still plan to include life insurance and annuities in their wealth plans, after stocks and savings.

This means they’re not against life insurance. They just want it on their terms.

Technology

Despite living in the world’s most digitised age group, the life insurance sector remains frustratingly analogue. The report finds:

• Only 31% of insurers have robust digital engagement platforms
• Just 16% offer personalised, data-driven advice at scale
• Yet 77% of young users expect customised recommendations based on their lifestyle

This gap is hurting adoption. To Gen Z, a paper form or phone call is a red flag. Insurance needs to move where the customers are: mobile-first, API-connected, with UX-prioritised.

The Indian paradox: Huge market, low urgency

India has one of the youngest populations in the world and one of the highest untapped insurance markets. This combination should be a goldmine.

But here’s the paradox:

• High awareness, but low action
• Trust in insurance, but low relevance
• Willingness to spend, but on products that feel real-time

What this tells us is clear: There is no demand problem. There is a design problem.

How can insurers respond?

The report outlines three actionable pillars that can help insurers reconnect with the under-40 audience:

1. Product Innovation

• Create modular, benefit-rich policies with real-life use cases
• Build-in early withdrawals, health-linked discounts, and lifestyle-based rewards
• Introduce short-term goals, not everything has to be 30 years long

2. Digital & Distribution Overhaul

• Invest in mobile-based journeys with seamless onboarding
• Use AI for personalised advisory
• Offer embedded insurance via HR, health, and fintech platforms

3. Human Touch?

• Train agents to educate, not just sell
• Reward relationship-building, not just conversion
• Use a hybrid model: digital self-service + optional human guidance

In short, life insurance must feel alive, not like a distant contract buried in a drawer.

The role of brokers

Younger customers aren’t anti-advice, they’re anti-hard-sell, anti-cold calls and anti-that-annoying-agent-who-won’t-stop-pestering-them. They want transparency, simplicity, and guidance on how life insurance fits into a broader wealth plan.

Brokers can:

• Act as educators, decoding jargon, showcasing use cases
• Serve as navigators, helping customers choose policies that flex with life
• Become advocates, pushing insurers to build products with living value

insurancepe believes the life insurance industry must evolve from “buy and forget” to “engage and benefit.” The winners will be the ones who:

• Speak plainly and avoid jargon
• Offer flexible value
• Embed into digital lives