Why getting insurance early in life is important

Insurance typically takes a backseat to other matters when one’s starting a career. Yet, today’s young adults live through many life-changing events that they look to financial planning, including insurance, to build a solid financial foundation .

This guide helps explain why insurance is important and outlines the benefits of starting early.

What is the importance of insurance in your overall financial plan?

Insurance is a fundamental tool for risk management and future planning. It provides you with the following:

• Financial safety net and protecting loved ones: Life is unpredictable. Insurance provides a cushion against unexpected events that could derail your financial plans, while ensuring your financial obligations won’t burden family members in unforeseen circumstances—even if you’re single.
• Peace of mind: Knowing you’re protected allows you to focus on your goals without constant worry about what might happen if disaster strikes.
• Better financial health through comprehensive planning: Insurance works hand-in-hand with government benefits, like what you get from your contributions to the Philippine Health Insurance Corp. and Social Security System. While these programs provide basic coverage, private insurance fills critical gaps and enhances protection.
• Long-term financial advantages: Starting early with insurance often means lower premiums and better coverage options as you age. It’s a strategic move that complements your other financial goals and builds preparedness for life’s risks over time.

Some factors to consider when choosing insurance

Not all insurance products are created equal. Apart from your budget, your needs, and your goals, here are some factors that you need to think about when considering putting a portion of your hard-earned income into insurance.

The best insurance policy is one that protects what matters to you most. Note that some policies can be customized to meet specific needs.

Coverage gaps in your existing protection

Consider what’s already covered and what isn’t. Your company HMO might cover basic health needs, but what about major critical illnesses? Products like AXA Health Start Lite fill these gaps affordably, covering cancer, stroke, and heart attack for as low as PHP 5,620 per year. The key is identifying where you’re vulnerable.

Life stage appropriateness 

Choose coverage that matches your current lifestyle and assets. As you achieve milestones like going on international trips or buying your first car, you’ll really want to consider more protection. Consider these two policies you can buy online:

• Car insurance — protects not just your car but also provides liability coverage and passenger protection. 
• Travel insurance— from flight delays to medical emergencies abroad, it ensures that adventures don’t turn into financial nightmares.

Flexibility and customization options

Look for policies that can adapt as your life changes. Some products, like AXA AllShield, offer customizable plans that let you adjust coverage as you hit different milestones. For young professionals, this flexibility means you won’t outgrow your policy—it grows with you instead.

Dual-purpose value proposition

Some policies do double duty, offering both protection and potential returns. Life insurance with investment components lets you secure your family’s future while potentially building wealth. It’s about maximizing the value of every peso you put toward insurance.

Why get insurance early?

Insurance provides a safety net against life’s uncertainties. With this layer of protection, you can move forward with greater confidence and focus on achieving your goals. Starting early offers key advantages:

• Lower premiums — premiums for life insurance and some health insurance are more affordable when you’re younger and healthier.
• Long-term protection — starting early ensures you have sufficient coverage as your life and financial responsibilities grow.
• Adaptability — many policies can be adjusted as life circumstances change.

As Metrobank’s official insurance partner, AXA offers a wide array of insurance plans available for your different needs. You can visit axa.com.ph to know or book an appointment with an AXA Financial Executive to consult on which protection solution best suits your needs.

Explore lifebanking.ph for more guides on financial planning, credit management, and insurance.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Financial decisions should be based on your own research and personal circumstances. Consider consulting with a qualified professional before making any financial decisions.