6 reasons to get insurance in your 20s

It’s a myth that only old people need life insurance or to look after their physical wellbeing. The truth is, everyone should have insurance as early as they can, preferably in their early 20s or the moment they start earning money.

You might be surprised to know that among the current generations, Gen Z’s are the most debt-averse and yet they are also the least financially literate, according to Forbes in an article in 2022. “Despite the fact that this generation is one of the most debt-averse generations yet, they also scored the lowest in a recent financial literacy study.”

Well, to be fair, the same study found that “no generation demonstrated a particularly high level of financial acumen.” 

Men belonging to the younger generations also lag behind women in terms of insurance coverage. A “a higher proportion of men than women do not have health insurance,” especially among those in their late 20s and early 30s, according to a 2015 study.

It bears repeating that a budget for insurance should be factored in on your monthly salary at whatever stage in life—but especially when you’re young because premiums will cost less for you. Here are more reasons why.

1. You will be ready for the “what if” moments.

Insurance is the best way to help your family when unexpected incidents happen. This is especially true if you are the family breadwinner. The money you will get from the insurance will help your family pay off existing debts or household expenses and ensure that your physical wellbeing is looked after.

2. You will pay a lower premium.

The younger you are, the lower your monthly insurance payments will be. Talk it over with an FWD Life Insurance financial advisor and find out how much you need to pay for the plan suited to your goals and needs. You’ll realize that it’s not as expensive as you think it is. FWD Life Insurance’s online shop also offers products you can easily afford even when you’re just starting to work. Check out FWD The One for Life Insurance Cover, which you can personalize and requires no medical exam!

3. You can fully pay your insurance early.

Since you are still young, you will have more time to complete your payments. Add it to the portion of your monthly salary that you put away—just like you regularly pay for your streaming subscriptions (all of which you probably don’t use anyway).

Actress and beauty queen Megan Young, 30, considers it her duty to her family and career to stay physically healthy but also knows that anything can happen and everything must be planned to live a vibrant, financially secure life. She says in the vlog she collaborated on with FWD Life Insurance that she and husband Mikael Daez do financial wellbeing checks regularly so they can do the things they enjoy like traveling.  “To do that, we always make sure that we work out and, of course, we take care of our finances,” she says.

When it comes to health, Megan likes to cover all bases and recommends FWD Vibrant Critical Illness Insurance to make sure that she’s taken care of before anything happens and if something does happen that curtails her ability to earn.

4. Your money will have more time to grow.

If you get VUL insurance, your money will be earning every year alongside your coverage. The earlier you get an investment-linked insurance or VUL, the more years your investments can grow. Don’t be afraid to ask your parents for a loan if you want to start investing but don’t have substantial savings yet.

As Stock Smarts CEO Marvin Germo says, “It’s never about getting rich quick; it’s about getting rich right and loving the process. The way for you to manifest your dreams in the future is to act on them today. Do the work right here, right now. Start deploying capital, start studying, saving, and investing.” The stock market analyst recommends FWD Manifest, an investment-linked insurance that gives both life protection and investment options (stocks, bonds or both). 

5. You can achieve your goals earlier.

Starting early means achieving financial wellbeing early, too. So when you talk to an FWD financial wealth planner, list down your goals in life—a house, a car, a business—and they will help you tailor fit your insurance to your goals and dreams.

6. You will be financially independent at an early age.

Believe it or not, you don’t need to reach 40 or 50 years old before you can achieve full financial wellbeing. If Gen Z’s or millennials start early, they’ll already have something substantial saved up in a decade or two.