Traditionally, Chinese are reluctant to talk about potential accidents, illness or death as they are considered to be ominous predictions, so insurance salespeople were often unwelcome guests. Previous reports about fake advertisements or someone being cheated by insurance companies also increase misgivings about the market.

But the tech-savvy, open-minded younger generation is much more inquisitive and inclusive. Li spent time comparing products of major insurers on the internet and consulted several friends before signing a contract. "It's important to read the contract thoroughly and sign up with a reputable company," she says.

She also doesn't care whether she ends up paying for nothing. "I'll be happy if they don't have to compensate me," she laughs.

Insurance penetration rate in China, although still low compared to other advanced markets in Asia, has been increasing over the last few years in accordance with the rise in GDP per capita. The growing middle-income group is at the heart of development of the insurance growth, says Laurent Doucet, partner at consulting firm Roland Berger.

"The post-1990s generation can now afford to care about additional spending in their household, which is a key contributor to the penetration of insurance products," he says. "They are also more conscious and inclined to choose patient-oriented, but more expensive services provided by private medical institutions which are covered by commercial health insurance."

Chen Maochuan, a finance analyst at consultancy firm Analysys, says as a generation born with the rapid development of the Chinese economy, their awareness of health and security is higher than previous generations, some of whom had a bad impression of the insurance sector due to unregulated market behaviors.

As more of them begin to take on more family responsibility, their demand for insurance will grow, especially in the medical sector, and in guaranteeing cash flow in the future, Chen says, adding that they are also willing to try new things and accept a level of trial and error.

He suggests consumers should not buy insurance blindly, instead, "You need to know your payment capabilities, balance the allocation of money in consumption, wealth management and insurance, and learn clearly about the insurance you buy and the company you cooperate with."