The definition of “success” and “fulfilment” is evolving day by day. Acquiring material possessions, such as property, cars, and fashionable clothes, has always been considered a sign of status, security, and a well-lived life. However, these days people have changed their mindset.
They prefer fulfilling life experiences over accumulating wealth. Thus, they are opting for travel, culinary explorations, acquiring new skills, and pursuing personal development. This change in life objectives affects not only people but also their financial choices.
Let's examine the reasons behind our changing priorities, the impact of generational values, and how to balance these new goals with financial security.
What were the Objectives of the Ownership Era?
During the 20th century, having assets was considered a sign of stability and success. Thus, individuals were focused on accumulating material possessions, such as luxury goods, a home, and a car.
At the top of the list was home ownership, which is closely associated with the symbolism of security for oneself and one's family. Having a car gave you status and mobility. These desires, which were further fuelled by the growth of consumer credit, also included designer goods and technological gadgets.
During this time, life insurance policies frequently emphasised wealth transfer and legacy, highlighting the significance of material belongings as indicators of success in life.
How the Shift from Ownership to Experiences Took Place?
A growing body of research and real-world trends indicates that people, particularly millennials and Gen Z, value experiences over material possessions. Spending on experiences such as travel, concerts, festivals, and classes brings more lasting happiness than purchasing goods.
Experiences create memories, cultivate personal relationships, and can be revisited mentally long after the moment ends. Digital sharing platforms also elevated the social value of experiences. A photo on a scenic mountain or at a unique cultural event brings more engagement than a picture of a new handbag. The experience itself becomes a currency.
The pressures of a fast-paced world have also strained the concept of presence and well-being. People are seeking connection, adventure, and meaning, rather than the fleeting thrill of a new purchase.
This trend was accelerated after the pandemic, when the opportunity to travel and gather was suddenly interrupted, making it even more valuable when it returned.
How Generational Changes Influenced Mindful Living?
When it came to questioning the script, millennials (born between 1981 and 1996) took the lead. Due to mounting student loan debt, challenging employment markets, and witnessing the housing crises of earlier generations, millennials have adjusted their goals.
They valued mobility, adaptability, and accumulating experiences over material possessions. These ideals have been reaffirmed by Gen Z (those born after 1997), who incorporate sustainability and purpose-driven choices into all aspects of daily life, including shopping.
Both generations gravitate towards minimalist living, driven partly by necessity (smaller homes, rising living costs) and partly by ideology. Even in financial planning, priorities are adjusting.
Flexibility and security are top considerations in this regard. Thus, insurance products, particularly term insurance and flexible life insurance, are regaining popularity. This is because they align with flexible lifestyles and offer security without tying up money in assets that don't appreciate.
Reframing Financial Security: Insurance in an Experience-Focused Life
As the focus shifts from material possessions to meaningful living, the framework of financial security also adapts. People still need protection for themselves and their loved ones, but motivations evolve.
Term insurance, for example, is perfectly suited to the needs of experienced individuals. It provides robust coverage at an affordable rate for a specific time in life. For instance, when family support is needed most or when one wants to ensure financial security for their family after a particular period, term insurance is most beneficial.
Likewise, life insurance is no longer just about legacy in the form of money for a house or inheritance of physical assets. It’s about ensuring dependents aren’t burdened and can continue to pursue their experiences or educational goals, even if the policyholder is no longer there.
Financial literacy campaigns now emphasise how life insurance gives peace of mind, enabling policyholders to take risks, explore the world, or invest in experiences without worrying about leaving loved ones unprotected.
A Life Well-Lived: Experiences as Your Legacy
At the heart of the shift lies a desire to leave behind not just money or material goods, but a tapestry of meaningful experiences for loved ones. Parents now focus on adventure-filled family trips, skill-building, and shared memories.
The concept of "inheritance" is a mindset that encourages future generations to be curious, embrace the world, and invest in relationships and self-discovery. Even in memorialising a loved one’s life, families recall adventures, stories, and shared journeys more than objects left behind.
In this context, a visionary life insurance policy provides more than a payout; it is a commitment to continuity, adventure, and security for those left to create and cherish new experiences.
How Life Insurance Aligns with Modern Aspirations?
As goals pivot towards experiences, financial planning needs to back these ambitions. Here’s how term and life insurance solutions fit seamlessly:
Affordability for Opportunity: Term insurance provides extensive coverage at a low premium, leaving more room in the budget for travel, education, or pursuing passions.
Flexible Riders: Need coverage while bungee-jumping or trekking Everest? Modern policies offer riders for adventure activities, global travel, and emergencies abroad.
Legacy of Freedom: Life insurance can be tailored to cover educational expenses, fulfil children's travel dreams, or support charity, promoting a philosophy of living life to the fullest.
When planning such policies, consider not just breadwinner protection, but also funding the adventures that matter to you and your loved ones.
Practical Tips for Experience-Driven Life Planning
Here are some of the tips that help you plan an experience-driven life:
Audit Your Priorities: List out life goals and see if more of them are experience-based than ownership-based.
Plan Your Finances Accordingly: Select life or term insurance policies that cater to your specific needs for an adventure-loving lifestyle.
Don’t Crowd Out Protection: Experiences matter, but don’t neglect financial safety nets.
Start Early: The sooner you secure affordable life insurance, the more financial resources you'll have available for your passions.
Review Regularly: As life changes, so do priorities. Regularly reassess both your dreams and your insurance coverage.
Life goals are no longer about what we own, but about the stories and the lives we create. As we embrace this experience-centric ethos, our financial decisions must reflect and support these values.
Choosing flexible, tailored insurance products, such as term life insurance, ensures that we have a safety net to pursue our dreams, explore, and lead lives rich in meaning and connection.
An experience-driven life is not about forsaking security, but about reframing it. It's about knowing the future is in good hands—so every day, you can truly live.