According to a survey by One Family Group, 37% of 18 to 40 year olds who have received some form of financial education have life insurance compare to 27% who have had none.
Similarly, 7% overall have income protection, rising to 10% if financially educated, and 7% have critical illness, going up to 9% if financially educated.
Those that are financially educated are also more likely to view protection insurance as more important compared to those that haven’t had any.
| Type of insurance | Had financial education (18-40 year olds) | Have not had financial education (18-40 year olds) |
| Life insurance | 84% see it as important | 75% see it as important |
| Critical illness | 81% see it as important | 69% see it as important |
| Income protection | 75% see it as important | 58% see it as important |
Of those surveyed, 36% indicated they have received financial education through sources including online courses, schools and universities, employers, government programmes or family and friends.
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Online resources was the most common source followed by family and friends.
Some 41% of men said they have had some form of financial education compared to just 32% of women while those living with a partner are significantly more likely to have had financial education than those that are living alone – 41% compared to 29%.
Homeowners are also much more likely to have had financial education than renters – 44% compared to 30%.
The UK Government confirmed earlier this month that financial literacy will be compulsory for primary and secondary schools in England, starting from September 2028.
The curriculum will include teaching children topics such as budgeting, mortgages, compound interest and money management.
Ryan Griffin, protection director at OneFamily, said: “What is clear is the important role [financial education] plays in helping both Gen Z and Millennials understand the importance of protection, with a surge in numbers understanding the importance of critical illness, income protection and life Insurance following some form of financial education.
“This is an important foundation to build on, and indications show Gen Z understand the importance of protection better than previous generations. However, there is still more to be done to turn awareness and understanding into action.
“With the recent news that children will also learn financial literacy from 2028 at primary school, there is a real opportunity here for younger generations to learn about both money management and protecting their futures earlier. This is essential to help people build confidence, resilience and the ability to make informed choices.”
