Tata AIA Life Insurance Study reveals strong balance between wealth creation and protection planning among young earners in Western India.
MUMBAI: Working Generation Z in West India, between the ages of 21 and 29, are charting a distinctive financial path marked by early financial planning, the highest equity participation nationwide, and growing insurance adoption, according to a comprehensive research study by Tata AIA Life Insurance and NielsenIQ. Titled ‘New Age Habits, Traditional Values: Gen Z’s Approach to Financial Planning’, the study surveyed working Gen Z individuals aged 21–29 years (born between 1997-2012). Traditionally perceived as risk-takers, this generation in the Western region is effectively translating investment intentions into concrete financial goals, demonstrating a sophisticated approach to building both wealth and long-term security.
Key Findings: West India Gen Zs Show Strong Affinity for Insurance and Long-Term Financial Protection
Term Insurance Gaining Momentum:
- 17% of Generation Z respondents in the Western region currently hold term insurance policies
- 25% express intent to purchase term insurance, indicating robust future demand
Savings and Health Plans Showing Significant Traction:
- 16% have invested in savings-oriented life insurance products
- 12% have secured health coverage, reflecting growing awareness of comprehensive protection
- 24% plan to invest in savings schemes shortly
Strategic Retirement and Emergency Planning:
- 55% identify sufficient retirement savings through life insurance as a key long-term financial objective
- 69% prioritize establishing emergency funds as their primary near-term goal
These metrics reveal a generation that is not just earning, but strategically saving and securing their financial future.
Insurance Selection: Key Decision Drivers
When selecting life insurance products, West India’s Gen Zs prioritize:
- Tax efficiency (68% value attractive tax-saving benefits)
- Value optimization (59% seek low-cost comprehensive coverage)
- Ease of use (44% prefer simple, straightforward claims processes)
This decision framework demonstrates financial sophistication, balancing economic benefits with service reliability.
Investment-Focused and Risk-Sensitive
Beyond insurance, Gen Zs in the Western region are making informed choices across financial instruments:
- 54% have invested in equities—the highest proportion across all regions
- 43% own gold investments, indicating appreciation for value-preserving assets
“The Gen Z generation in West India shows very encouraging signs of financial maturity, especially how they look at insurance. They opt for term plans, saving products, and health coverage that reflects a greater awareness of how protection can create wealth. At Tata AIA, we see this as a massive opportunity to empower this generation with customized, digital-led life insurance that can provide both financial freedom and long-term dreams for them,” said Girish Kalra, Chief Marketing Officer of Tata AIA Life Insurance.
Conclusion
West India’s Generation Z population is redefining itself by integrating equities and insurance, short-term objectives with long-term perspective, and protection with purpose. As their interest in insurance increases, there is an equal opportunity for life insurers to assist them in creating secure and sustainable financial futures.