To be financially responsible, you must ensure your savings, investments, and insurance are in place. Each plays a distinct role in securing your future. Unfortunately, many young individuals believe they have ample time to plan their finances—especially when it comes to insurance. If you’re focusing only on investments and think insurance can wait, you might be making a costly mistake.
Have you considered what would happen to your family if anything unfortunate happened to you?
Without term insurance, your dependents could face financial hardship in your absence. And with rising medical costs in India, not having health insurance could mean wiping out your savings and investments during a medical emergency. Insurance is not just a safety net for your family—it’s also a shield for your wealth.
So, the idea that you don’t need health insurance in your 20s is a flawed assumption.
Here are some reasons why getting insurance in your 20s is one of the best financial decisions you will ever make.
You have time on your side
Starting early makes you a low-risk candidate for insurers. In your 20s, you’re generally healthier and less prone to lifestyle diseases. This translates to significantly lower premiums. For example, a ₹5 lakh health cover might cost ₹4,000–₹6,000 annually at age 25, compared to ₹12,000 or more at age 45 . Locking in a policy now can help you maintain affordable premiums for years.
Your dependents and financial liabilities are covered
Even if you don’t have dependents yet, you may have financial obligations—student loans, co-signed education or home loans, or supporting your parents. Term life insurance ensures these liabilities don’t become a burden on your loved ones if something happens to you.
Your health and wealth can be protected
You may postpone getting health insurance, thinking your youth and fitness will prevent you from major medical expenses. However, medical emergencies can strike anyone, regardless of age. But data shows that even young adults are increasingly affected by serious health issues like cardiac conditions. A single hospitalisation can cost lakhs, especially in metro cities.
With health insurance, you can rest easy knowing you won’t need to touch your savings or take out a loan just to cover medical expenses.
Your financial plan is robust
Insurance products like ULIPs and endowment plans combine protection with savings. While they may not offer the highest returns, they can help build disciplined savings habits and offer life cover. ULIPs also allow market-linked growth, while endowment plans provide guaranteed returns.
You can be at peace knowing you have insurance coverage
Insurance brings peace of mind. It helps you avoid financial setbacks, emergency loans, and stress during crises. Your 20s are the best time to build strong financial habits—saving, budgeting, and insuring—rather than chasing risky returns without protection.
Insurance doesn’t prevent unfortunate events—but it does protect your loved ones from the financial consequences. Buying health and life insurance in your 20s is a smart, cost-effective move. It’s like wearing a seatbelt: it doesn’t slow you down, but it keeps you safe.
