Only half of Gen Z understands basic insurance terms, study finds
Author: Alan Goforth
Original article here.
Although more than one-third of Gen Z adults pay for a cellphone protection plan, only 21% have a renters insurance policy. This discrepancy points to a need for better education about risk and why having the right insurance coverage matters.
"There's a gap in insurance knowledge among Gen Z adults," said Andrew M. Mais, president of the association and Connecticut insurance commissioner. "This is a critical time in their lives as they are laying the groundwork for their financial futures, and as an insurance regulator, I know how confusing navigating the world of insurance can be. The good news is you don't have to figure these things out by yourself. There are independent resources to help consumers of all ages and stages of their lives get answers to insurance questions and ensure there are no gaps in their coverage."
In a recent survey by the association:
- More than half of respondents said they feel "overwhelmed or anxious" at the thought of dealing with insurance.
- About one-third of young adults said they were "going to try to wait as long as possible" to get their own life insurance, with 28% saying the same for health insurance.
- Just more than one in four Gen Z adults could correctly identify the insurance terms "deductible" (27%) and "copay" (29%). A higher percentage (36%) said they could identify "out of pocket," while only 19% said they could define "out of network."
- Twenty-two percent of Gen Z respondents have little or no awareness of the importance of auto insurance, and 14% have little or no awareness of the importance of health insurance.
Not all of the findings are negative, however.
"For example, 61% of Gen Z adults surveyed already pay for their own health insurance, while 49% carry automobile coverage," Mais said. "There are several areas where we have a solid base to build on as we mind the gap, or help close protection gaps and ensure more people have the coverage they need."
State insurance departments are good sources of objective information, he said.
These departments advocate on behalf of consumers across all coverage types and can address consumer questions or concerns about obtaining coverage, filing claims, appealing denied claims, fraud or resolving issues with an agent, broker or provider.
