South India’s Gen Zs Redefine Financial Discipline: Lead on Long-Term Planning and Life Insurance Purchase

The Tata AIA Life Insurance Study

Bengaluru, 09th June, 2025 – Digitally fluent, financially aware, and protection-first—Gen Zs in South India are setting the pace for India’s next generation of financial planners. As seen in a recent research study by Tata AIA Life Insurance and NielsenIQ, titled ‘New Age Habits, Traditional Values: Gen Z’s Approach to Financial Planning’, working members of Generation Z (21–29 years) of the South Zone have proven to be the most financially ready and protection-minded in the nation.

These young earners not only make long-term plans for retirement and financial freedom but are also showing a strong inclination towards insurance-based financial products, thus becoming one of the most future-oriented consumer segments in modern society.

Top Takeaways: South Gen Zs Set the Benchmark in Financial Preparedness

Insurance: A Pillar, Not an Afterthought

· 54% of Southern Generation Zs consider getting sufficient retirement savings through life insurance to be a top long-term financial priority, the highest rate in the nation

· 22% have already bought savings plans, and 21% have bought health insurance plans — both of which top all four regions polled

· 49% would pay over ₹2,000 per month for life insurance — reflecting high value perception and buying intent

Future-Proofing via Inflation Awareness

· 78% of South Gen Zs intentionally budget for inflation in their financial planning — the highest of all zones — showing high economic pragmatism and foresight

Protection and Savings Lead Insurance Purchase

· 28% of people prefer to buy term insurance, and thus pure protection policies are gaining huge momentum

· 26% also intend to invest in savings-focused life insurance products, further pursuing long-term wealth creation

What Gen Z in South Looks for in a Policy

· 61% are drawn to life insurance policies with low premiums with full coverage

· 22% view tax-saving benefits as an important buying factor

· 37% appreciate a simple and easy claims process, emphasizing the significance of service experience in financial decision-making

“South India’s Gen Zs are creating a financial map of their journey with protection at its centre. Their consumption behaviour indicates a shift in attitude — from spending to securing, from reacting to planning. Their holistic approach allows them to plan for a secure and independent future. At Tata AIA, we are dedicated to facilitating this change through products that are crafted to address their needs,” said Girish Kalra, Chief Marketing Officer of Tata AIA Life Insurance.

South Indian Gen Z are not merely aware of financial risks; they are also actively minimizing such risks by planning, insuring, and saving prudently. Their future-oriented decisions make them a special generation with aspirations for financial independence, security, and long-term worth, thereby a high-value segment in India’s evolving insurance and investment landscape.