June 1, 2020
Due to travel restrictions, plans are only available with travel dates on or after
Due to travel restrictions, plans are only available with effective start dates on or after
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Ukraine; Belarus; Moldova; North Korea; Russia; Israel
Jamaica
Jamaica;
For a long time, travel insurance was considered to be most valuable for older travelers. They were the ones who were spending the most on trips, after all, and the ones who had the highest risk of a medical emergency while traveling.
Now, Gen Z and millennials are flipping the script. “While almost two-thirds, or 73%, of people are willing to pay extra fees for travel insurance or refundable booking options for their trips, Gen Zers and millennials are far more willing — at 87% and 83%, respectively — to pay extra for travel protections compared with other generations,” reports CNBC.
Why is travel insurance so popular for millennial and Gen Z travel? Here are some likely reasons.
As young as they are, Gen Z has lived through some tough financial times. Many saw their parents struggle during the Great Recession of the late 2000s. Then came the chaos of COVID, then they experienced soaring rents and high inflation. As a result, “this generation is driven by pragmatism and security,” according to an analysis by the Annie E. Casey Foundation. “Thus, they value the stability that comes with conservative spending, stable jobs and smart investments.”1
Millennials share some of these traits. In a nutshell, they’re “financially confident but very stressed,” as Investopedia puts it.2 How is this mindset reflected in Gen Z and millennial travel plans? They know that travel insurance is a smart investment.
Let’s say you’re planning a weeklong cruise to Grand Cayman Island and Mexico with your best friend.
Two days before you sail, your friend is hospitalized with a sudden illness. Without insurance, you’d face a tough choice: Go on the cruise solo, or cancel and lose almost all of your trip investment. The cruise fare is totally nonrefundable, while you can get a $300 credit for the plane ticket.
With insurance, you can be reimbursed for all your nonrefundable, prepaid trip costs following a covered trip cancellation. So, is it worth spending $102 to protect $2,700? Millennials and Gen Z know the answer.
Many companies have strict vacation-time policies and limited PTO, especially when you’re early in your career. Unlike retired Boomers and older travelers, Gen Z and millennials just don’t have a ton of flexibility with their jobs. As a result, they have to plan their trips carefully—which means travel delays or other problems can become a Big Deal.
Fortunately, travel insurance can help defend your precious vacation time! Your plan can reimburse you for covered losses when your trip is unexpectedly delayed or interrupted.
YPulse asked Americans aged 13-39: “If you could take a trip anywhere in the world, where would you go?” Their top 10 answers:
You’ll see only two U.S. destinations on the list (and Hawaii is pretty far-flung). International travel is big for Gen Z and millennials—and they know that when you go overseas, travel insurance is a must. You’re far from home. Your U.S. health insurance card isn’t typically accepted. And if anything goes wrong, you’ll want to have Allianz Travel Insurance on your side.
Learn more: The Simple Guide to International Travel Insurance Benefits
Older travelers may remember a time when air travel—and travel in general—just seemed smoother. No more! Despite all the technological tools that simplify booking and planning travel, the process of getting from point A to point B feels ever more chaotic.
Gen Z and millennials are used to high rates of flight delays and cancellations.3 Airline strikes and weather-related shutdowns. Rapidly changing rules and restrictions for entering other countries. People acting out of control on airplanes. And, of course, the travel stoppages and changes caused by COVID.
While travel insurance can’t make people behave well on planes (sorry), it can help mitigate other travel disruptions. If you experience a covered travel delay, for instance, the travel delay benefit can reimburse you for any prepaid trip expenses lost because of a delay, as well as additional expenses for meals, accommodation, communication, and transportation during the delay.
A lot of older people like to talk about younger generations’ perceived desire to stay in their comfort zone, in everything from relationships to financial decisions. Gen Z especially has been described as “pampered,” “protected,” and “risk-averse.”4
This isn’t really a fair description. After all, both Gen Z and millennials love to travel—and seeking out new adventures is the opposite of avoiding risks. There’s also the fact that younger people are living in a world full of new risks: climate change, natural disasters, and economic and political upheavals.
Given that context, travel insurance just makes sense. Insurance can’t prevent bad things from happening, but it can offer helpful assistance for all kinds of travel mishaps and challenges.
Did you know that Allianz Travel Insurance bases the cost of travel protection on only two factors? These are the cost of your trip (if you’re insuring trip costs) and the traveler’s age. Younger travelers pay less, because their risk of experiencing a medical emergency is lower. That’s why travel insurance is typically an affordable purchase for millennial and Gen Z travelers.
Discover why 70 million Americans trust Allianz Travel Insurance to protect them! Get a quote and compare plans to find one that fits your budget.
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Terms, conditions, and exclusions apply. Please see your plan for full details. Benefits/Coverage may vary by state, and sublimits may apply.
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