LIMRA: How AI can educate consumers on life insurance

Though Gen Z and Millennials are the most likely to say they need life insurance, they are also the least likely of generations to say they have enough coverage, according to the 2025 Insurance Barometer Study by LIMRA and Life Happens.

LIMRA research shows that Gen Z and Millennial adults, who are at the age of achieving major milestones in their lives and careers, believe that they can't afford a life insurance policy despite their need for coverage. Almost half, 46% of Millennials, and 37% of Gen Z adults say that the high cost is one of the top reasons for having less than ideal coverage, or none at all. 

Participant responses from a LIMRA qualitative study on opportunities in underserved markets, conducted in December of 2024, reveal that some expect the cost of a life insurance policy to be comparable with an auto insurance policy–which LIMRA says can be five times or more expensive.

LIMRA shares the significance of consumer awareness and financial education around the true costs and value of life insurance products, specifically highlighting the use of AI tools as a valuable resource. According to their research, six in 10 adults say they would use an AI tool to research life insurance – and many young adults also say that comparison and budgeting tools would provide clarity on the most suitable products and costs. Chatbots and video also have potential as financial education resources, according to LIMRA.