How the life insurance industry can reach the social media generations
The life insurance industry must find new ways to reach young consumers in a world of short attention spans and increased dependence on social media influencers.
A LIMRA researcher shared his insights as well as findings from the 2025 Insurance Barometer study during a recent online event.
The 2025 Insurance Barometer Study, conducted jointly by LIMRA and Life Happens, shows that young adults believe the cost of a policy is significantly more than its actual price.
The study suggests a connection between knowledge about life insurance and ownership. Of Generation Z adults and millennials who own life insurance, 47% say they are extremely or very knowledgeable about life insurance, compared to 24% who say they lack knowledge. Additionally, more than half of young adults (53%) who say they are somewhat or not at all knowledgeable about life insurance have an insurance coverage gap; meaning they recognize they need (or need more) life insurance, but do not possess adequate coverage.
Why does this gap exist and how can the industry close it?
The age at which someone is considered to be a “young adult” keeps getting pushed back as young adults continue to delay life milestone such as buying a home or having a child, said Steve Wood, research director at LIMRA Consumer Markets.
“It’s a new world in attention spans and gathering information and where people to go to seek knowledge,” he said.
Young adults who responded to the barometer study said they don’t own life insurance because they believe it’s too expensive, but that perception is only one factor leading to the coverage gap, Wood said.
“They also don’t understand life insurance,” he said. “That’s the challenge for the industry, to engage with them and attract their attention.”
LIMRA research shows only 52% of Americans own life insurance, with more than 100 million Americans uninsured or underinsured. As fewer adults have coverage, younger generations are not being exposed to the product in their homes, Wood said.
“Conversations about life insurance aren’t happening as much as they were and that knowledge isn’t imparted to the next generation,” he said.
Young adults also have more investment and savings options available to them than older generations had, Wood added.
“There are a million other products that young adults think are better for them than there were years ago. There are more savings and investment vehicles that are quick and simple. Life insurance has an image of not being quick and simple.”
The industry is responding by increased use of accelerated underwriting and less need for invasive testing such as blood draws, Wood said.
Wood called for the industry to “rethink how we market to younger adults and remarket the way our products work.”
The industry also must understand the realities of the world in which young adults live today, he said, and provide them with policies that make the most sense at each stage of their lives.
Social media influences the life insurance purchase
The rise of social media also contributes to young adults’ decision to purchase life insurance, Wood said.
The barometer study showed 62% of consumers use social media to gain insights into financial products and services. “What that means is that they’re not going to Google to find your dot.com website,” Wood said. “They’re going to TikTok, Instagram, Facebook and YouTube. The industty must be as visible in those spaces as possible.”
But the increased use of social media to obtain information also means an increased probability of finding disinformation online, he cautioned.
“On social media, you are competing with influencers who are charismatic but not necessarily licensed. I tell life insurers to lean on brand, lean on longevity. Some of our member companies have celebrated their 150th year. Tell real life stories of how life insurance helped a family. Be transparent about who you are, keep the message simple.
“That guy on TikTok has been there for six months. We’ve been around for 150 years. There’s a way to message that.”
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