Alan Lakey, founder and director of CIExpert, says: “Among younger clients, one of the most persistent misconceptions is that serious illness, disability or death is something that happens to ‘other people’ much later in life.
“If you’re in your 20s or 30s, reasonably healthy and busy building your career, it’s very easy to assume, almost unconsciously, that you are invincible.”
Lakey points to a poor understanding of what protection does, adding: “Many younger people think of it as a kind of vague back-up, without appreciating the specifics: replacing income if they cannot work, clearing or supporting mortgage payments, funding adaptations to the home, or providing a lump sum to relieve financial pressure at a very difficult time.
“If you don’t understand the tangible outcomes, it simply looks like another bill.”
Cost-of-living cuts
The cost-of-living crisis has sharpened attitudes to finance among younger borrowers.
Rising rents, mortgage rates, energy bills, and everyday expenses mean that every pound is scrutinised. Protection can easily slip down the priority list when immediate costs loom larger.
Ian Smith, mortgage and protection adviser at CW Mortgages, says: “The cost-of-living pressure has definitely made younger clients more cautious, and protection can sometimes be pushed down the priority list. When people are dealing with higher rent or mortgage payments, it’s understandable that they focus on immediate outgoings first. That said, it also makes some clients more aware of financial risk.”
Schofield has a more nuanced view: “On the one hand, budgets are tighter than ever. Younger borrowers are dealing with higher rents, rising interest rates, and increased everyday costs.
“That can push protection down the priority list because it’s seen as another bill at a time when they’re already stretched.
“On the other hand, the cost-of-living crisis has made many people more aware of how vulnerable their finances really are. They’re asking, ‘What happens if I can’t work? What if my income stops?’ That awareness can actually open the door to a more honest conversation about risk.”
For brokers, the challenge is to make protection not just relevant but essential – a core part of financial stability, alongside budgeting, debt management and saving.
Unique risks
Younger borrowers face risks that are both familiar and new. Income vulnerability is acute: variable pay, short-term contracts, and limited sick pay mean that a few months off work can be disastrous.
Debt burdens are also higher, with student loans, credit cards and car finance commonplace. Housing costs take up a substantial share of income, and missed payments can quickly lead to arrears or even repossession.
Ammer Mohammed, founder of Protectix, says: “Younger clients may have fewer assets, but they can still have considerable liabilities such as rent, debts, dependants, shared bills, career risk and family responsibilities. The risk is not just death or serious illness. It is financial interruption.”
Lakey adds: “Borrowers today, especially younger ones, are often stretching themselves to get onto or stay on the property ladder.
“Higher interest rates, stricter affordability rules and general inflation mean that many households are operating with very narrow margins. That in itself is a form of risk: there is less slack in the system if something goes wrong.”
Digital engagement
Gen Z and Millennials are digitally native. They often start their financial journeys online, seek advice from social media influencers, and expect transparency and control.
“Technology has fundamentally reshaped how younger generations engage with all forms of information, and financial services are no exception,” Lakey explains.
“For Gen Z and Millennials, the default starting point is digital: a search engine, a comparison website, a social media clip, or a recommendation from an online community.”
Schofield notes that it is not just the medium, but the tone of communication that must change, adding: “Young clients switch off quickly if they feel they’re being ‘sold to’ with technical terms. We try to explain everything in straightforward language – ‘what this does for you’ rather than ‘product features and benefits’. Stories over statistics. Real-life scenarios – someone their age who was off work for six months, or a client who used income protection to keep their home – are far more powerful than abstract percentages.”
Digital communication – emails, messaging, short videos, and interactive tools – can help make information accessible. But this is not just about convenience. It is about building trust and making protection feel relevant to the client’s real life.
Adapting the advice approach
For brokers, the opportunity is clear: to differentiate themselves in a competitive market by becoming the go-to for younger clients. This means adapting conversations, using digital tools, and focusing on education rather than the hard sell.
Smith says: “With younger clients I’ve adapted my approach to focus on what’s realistic for them now, rather than trying to cover everything at once. It’s about starting with what’s most important and building from there. Every case is specific to the client, and no two situations are the same.”
Schofield adds: “Rather than starting with ‘life cover’, we often start with protecting their income and their ability to pay the mortgage or rent. That feels more immediate and relevant.
“We offer video calls, shorter virtual check-ins, and online document sharing, which fit better around their work and life.”
Mohammed highlights the importance of finding the right ‘in’, saying: “A better approach is to begin with vulnerability: what income supports their lifestyle, who depends on it, what fixed costs exist, and what would happen if that income changed or stopped entirely.
“From there, the protection discussion becomes practical rather than abstract.”
Making products accessible
Product innovation is playing a vital role in bridging the generation gap. Flexible protection products – short-term income protection, modular cover, reviewable benefit levels – make it easier for younger clients to start small and adapt as their circumstances change.
Lakey says: “Flexible protection products have made a big difference, especially for younger clients who might be unsure about committing long term. Being able to adjust cover as circumstances change gives people more confidence to get started.”
“We’re seeing more flexible products,” Schofield agrees. “Policies that are more adaptable to changing circumstances, which suits younger people whose lives move quickly.
“[There is a] greater focus on added-value benefits. Things like virtual GPs, mental health support, and rehabilitation services.
“These are particularly relevant to younger clients who value wellbeing and access to services, not just cash payouts.”
This flexibility can help protection grow and change as the customer does, Mohammed adds: “Products that allow clients to adapt cover over time can make protection feel less rigid and more realistic.
“Options such as reviewable cover levels, added benefits, income-focused protection, or policies that can be adjusted as circumstances change can help clients avoid an all-or-nothing decision.”
Education and engagement
Technology is not just changing how clients access information, but how advisers work. Digital pre-assessment tools, online calculators, and interactive comparison platforms are making protection advice more accessible and efficient.
Lakey says: “CIExpert’s tools allow advisers to see, at a glance, where policies are stronger or weaker, and to articulate those differences in plain English. For younger clients, this is particularly important.
“They are often time-poor and sceptical of anything that looks like ‘small print’.
“If an adviser can show, visually and succinctly, why a particular contract is more robust or better suited to their circumstances, that builds trust and helps them feel informed rather than overwhelmed.”
Schofield suggests integration with budgeting and banking apps as a way of reaching younger generations on the platforms that already form part of their daily routine.
He says: “We’re likely to see protection linked more closely with budgeting and banking apps, so clients can see their cover alongside their everyday finances.
“As data and technology improve, products may become more tailored to individual lifestyles and risk profiles, which could particularly benefit younger, healthier clients.”
Bridging the generation gap requires more than product innovation – it demands a cultural shift. Advisers must listen to younger clients, communicate differently, and educate earlier.
Lakey says: “Tone matters. Younger clients can spot sales talk a mile away, so authenticity and honesty are vital.”
While these products may not speak to younger clients as urgently as they do older cohorts, this does not mean they are apathetic. Mohammed says: “The industry must be careful not to assume younger clients are disengaged. Many are financially aware. They simply expect the conversation to be clear, efficient and connected to real life.”
This is not just at the feet of advisers. Lakey feels that the process should start earlier: “Financial education should not begin at the point of product sale. There is a strong case for more collaboration with schools, universities, employers and community groups to introduce basic concepts of risk, insurance and long-term planning. The aim is not to sell policies to teenagers, but to normalise the idea that protecting your income and health is part of responsible adulthood.”
Ethical responsibility
In a market that has become increasingly focused on the obligation to do well by clients, not least due to the advent of the Consumer Duty, bridging the protection gap for younger people fits within a wider tapestry of broker responsibility.
Smith says: “I genuinely believe brokers play a key role in closing the protection gap, as many younger clients simply haven’t had it explained to them properly before. For me it’s about keeping things clear and relatable, so I take the time to help clients understand how it fits into their overall financial position, rather than just presenting it as a bolt-on product.”
Schofield notes: “For younger borrowers, I’d say: don’t wait until something goes wrong to think about protection. You insure your phone and your car – your income and your health are far more valuable. Even a modest level of cover can make an enormous difference when life doesn’t go to plan.”
For brokers and advisers, Schofield stresses the importance of not underestimating younger clients, saying: “They’re often highly engaged and keen to learn, as long as we speak their language and respect their circumstances.
“If we focus on education, transparency, and building long-term relationships, we can help a generation that has faced a lot of financial headwinds to build real resilience.”
When tailoring the advice approach for any cohort, younger generations included, it is also important to go to the source. Rather than presuming to know what will work, Lakey says, engaging Gen Z and Millennials will come down to “genuinely listening to younger people.”
He continues: “Their financial reality – juggling rent, insecure work, climate concerns, social pressures and digital life – is quite different from that of older generations when they were the same age.”
In this new normal, alongside greater education and awareness, Schofield warns that protection itself must become “more flexible and easier to understand,” fitting around people’s lives, rather than the other way round.
Mohammed adds: “Flexible cover, straightforward underwriting, digital servicing and the ability to adjust policies as life changes will all help protection feel less rigid and more compatible with how younger people actually live.”
The risks faced by younger borrowers are immediate and evolving, making protection more important than ever.
Every conversation between adviser and client is a chance to bridge the gap between vulnerability and security, and to provide advice that will continue to be relevant and supportive for clients well into the future, no matter how their circumstances change.
“Product innovation is playing a vital role in bridging the generation gap. Flexible protection products […] make it easier for younger clients to start small and adapt as their circumstances change”
In Numbers
56% — of Gen Z and 47% of Millennials have heard about critical illness cover via social media
38% — of Millennials and 36% of Gen Z would prefer an enhanced critical illness plan, while 11% of both generations would pay more for broader protection
60% — of both Gen Z and Millennials cite personal health vulnerability or NHS-related concerns as a key driver for critical illness cover
51% — of Gen Z and 46% of Millennials say income protection feels more relevant when everyday health conditions are covered in the policy 40% — of Millennials and 42% of Gen Z want income protection that can move with them if and when their work situation changes
58% — of Gen Z and 56% of Millennials would prefer long-term income protection that pays out until recovery or retirement, or short-term cover with a route to extend
65% — of Millennials and 64% of Gen Z feel positive about rehabilitation and return-to-work support
20% — cite affordability as the most common reason for not having income protection, while 14% do not understand how income protection works, and 13% do not trust that insurers will pay out
Source: CIExpert
The new age of protection conversations
Stephanie Charman
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Many younger people see protection as either too expensive, too complicated or simply something they can think about later. Research consistently shows that consumers believe protection products cost around twice as much as they actually do, while many younger people remain unclear about the differences between life insurance, critical illness cover and income protection.
This is where brokers play such an important role: protection conversations should not be treated as an optional add-on to the mortgage process – something most people do not encounter until their mid 30s. They are a vital part of helping clients build financial resilience and protect their homes, lifestyles and future plans. The industry also needs to recognise that younger consumers expect different forms of engagement.
Gen Z and Millennials are digital natives who increasingly seek information through social media, online content and peer recommendations. Brokers may get far better engagement via platforms like TikTok and Instagram than email. We can certainly learn from the better ‘finfluencers’, many of whom are helping to make conversations around money, protection and financial resilience more accessible to younger audiences.
However, it is equally important to recognise that not all online financial content is responsible or well-informed, and some influencers may lack the qualifications or expertise needed to give appropriate guidance.
That is why professional advice remains so important. Social media can play a valuable role in raising awareness and encouraging engagement, but brokers and advisers are still crucial in helping consumers understand complex products properly and make informed decisions that are right for their individual circumstances. Advisers need to combine digital engagement with clear, accessible conversations that cut through complexity and help clients understand real-life risks in relatable terms.
It is also vital we use the right language to communicate with younger clients, who may disengage from conversations focused solely on death or worst-case scenarios, for example. Positioning protection around financial resilience – maintaining independence, protecting income, safeguarding a rental home or giving families breathing space during illness can be much more effective.
The brokers who succeed in bridging the generation gap will be those who make protection conversations feel relevant, approachable and part of normal financial planning rather than something separate or intimidating.
Ultimately, good protection advice is not just about selling a policy, it is about helping younger consumers feel financially secure in an increasingly uncertain world.