Pandemic-hit ‘Gen Z’ will most benefit from protection
The pandemic has affected different generations in different ways. For the elderly, it threatened their health and independence. For younger generations, and particularly Generation Z (people born after 1997), the biggest impact has been financial.
Lockdowns and business closures have had a disproportionate impact on young people, with under 25s representing 70% of employee job losses between March 2020 and May 20219 . And yet, 50% of Gen Zers are unaware of income protection insurance, which could provide them with much-needed financial stability10.
Income protection insurance
Income protection insurance is a type of insurance that is designed to pay out a monthly income if you are too ill or injured to work. This income will help you pay your rent/mortgage, bills and living expenses while you are unable to work – and alleviate your financial stress and the pressure on your savings.
Going it alone
As digital natives (people who have grown up surrounded by technology) and with mobile banking and other financial apps at their fingertips, Gen Zers are more likely to go it alone with their finances when compared with other age groups. However, without expert financial knowledge, they risk not selecting the products and solutions that will best suit their circumstances.
Valuable peace of mind
Taking professional financial advice may not be Generation Z’s first port of call, but it could help younger age groups find income protection cover that suits their circumstances – and deliver valuable peace of mind.
9 House of Commons Library, 2021, 10Anorak, 2021