Gen Z & Debt: Are You Over-Leveraged Already?
Young Indians are taking more loans than ever — buy now pay later, personal loans, credit cards — but most have zero life or health insurance. One job loss or medical emergency can destroy everything they've built.
Many Gen Z earners spend more on OTT subscriptions than on term insurance — which costs less than ₹500/month for ₹50L cover.
Your generation is over-borrowed and dangerously under-insured right now
Key Takeaways
Buy a term life insurance plan before your next loan — at age 25, a ₹50L cover costs under ₹500/month and protects anyone who depends on your income.
Get a basic health insurance policy of at least ₹5 lakh — one hospitalisation without cover can push you into a debt spiral that takes years to escape.
List all your active credit lines (credit cards, BNPL, personal loans) and calculate your total EMI-to-income ratio — if it crosses 40%, start paying down before borrowing more.
Young Indians are taking more loans than ever — buy now pay later, personal loans, credit cards — but most have zero life or health insurance. One job loss or medical emergency can destroy everything they've built.
Here's what happened: Young Indians aged 18–30 are rapidly adopting credit — personal loans, EMI cards, BNPL — often without any life or health insurance as a safety net.. Financial planners warn that affording an EMI today does not protect against income shocks like job loss, illness, or accidents that make repayment impossible tomorrow.. Without term life insurance, co-borrowers or family members can be left liable for outstanding loans, while the borrower's own financial future stays permanently unprotected..
What you should do: Buy a term life insurance plan before your next loan — at age 25, a ₹50L cover costs under ₹500/month and protects anyone who depends on your income.. Get a basic health insurance policy of at least ₹5 lakh — one hospitalisation without cover can push you into a debt spiral that takes years to escape.. List all your active credit lines (credit cards, BNPL, personal loans) and calculate your total EMI-to-income ratio — if it crosses 40%, start paying down before borrowing more..
Pro tip: Buy term insurance while you're young and healthy — a pre-existing condition diagnosed later can make you uninsurable or push premiums 3–5x higher for life.
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- [1]“What Gen Z can do differently to avoid being over-leveraged and under-insured” mint - money · 4 Sept 2026
This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.
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