The study of 2,000 adults aged 18 to 40 found that financial literacy has a direct impact on both attitudes towards and ownership of life insurance, critical illness cover and income protection.
The data shows that 30% of 18 to 40 year olds hold life insurance, but this rises to 37% among those with financial education compared with 27% of those without. A similar pattern appears across other protection products, with financially educated respondents showing consistently higher uptake.
Financial education also increases perceived importance of cover, with large gaps between those who have received financial guidance and those who have not.
Only 36% of 18 to 40 year olds say they have received any financial education, and access is not evenly distributed - 41% of men report receiving financial education compared with 32% of women; 48% of London respondents have received financial education compared with just 25% in Scotland; and Gen Z are more likely than Millennials to have learned about finance at college or university (34% vs 25%).
Most financial education comes from online resources (43%), followed by family and friends (36%). Only 18% recall receiving financial education at school, highlighting the significance of the UK Government’s decision to make financial literacy compulsory from 2028.
Ryan Griffin, protection director at OneFamily, said: “There are some stark differences when it comes to financial education, with nearly three in five 18-40 year olds having had no financial education at all. What is clear however is the important role it 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.”
