5 Things You Must Know About Insurance in Your 20’s

For a lot of us, our 20s seem like the best time to experience a lot of firsts. As young professionals, it is the time we take on our first jobs, handle our own money, and even splurge on products we were previously unable to afford.

Securing an insurance policy may seem like the last thing in the minds of those in their 20s, but this should not be the case. On the contrary, this is the best time to invest in an insurance plan. Know your options, and begin scouting for the most suitable policy that suits your lifestyle and investment goals, so you can make your 20s one of the most vibrant and financially empowering periods of your life.

If you can spend your hard-earned money on the latest smartphone models, jetting off to popular travel destinations, or clicking “add to cart” in online shopping apps, you should also think about investing in things that can pave the way for a more secure future, like an insurance policy.

Here are the five things that you must know about insurance in your 20’s:

Insurance premiums are cheaper when you apply at a younger age, because you are perceived to have lower risk of death or contracting a serious illness. Many people postpone getting an insurance policy in their 30s or 40s, not realizing that they could have gotten a better deal - as well as much-needed protection - on securing one in their 20s.
For young professionals, it is always an exciting experience to make and manage your own money for the first time. Understandably, you would want to buy material items, like a smartphone or a snazzy pair of sneakers, that you have only dreamed of before, and now have the means to actually obtain. However, the thing with material items is that their value often depreciates over time. Inversely, an insurance plan’s value remains - its amount will remain the same as of the day you signed the contract, and can, provide you with an extra layer of protection and security as the years go by.
Those in their 20s may have heard of the benefits of securing an insurance plan but are reluctant to invest, for fear that they will need to shell out a significant amount to do so. This is not the case. Nowadays, there are many different kinds of insurance policies that you can choose from so that you can easily get one that fits your lifestyle. The best way to know more about your options is to contact us.

The word “insurance” may seem daunting. What does it mean? What does it cover? Why would I need one?

It is a good thing that the answers to all your questions are available at your fingertips. You can learn more about the different kinds of insurance policies all in one website, check social media for updates, or simply call a hotline. Not only that, but there are also many Life Changers available to talk to, and give you all the guidance you need.

How old are you now? Insurance plans generally cost less at lower ages. Cost of insurance at younger ages represents lower risk of disease or mortality.

Despite the wealth of information available, you may still be cautious at the thought that insurance is complex and difficult to understand. This fear should not get in the way of your investment and wealth-building journey, especially when there are variable unit-linked (VUL) insurance plans that you can look into.

A VUL policy allows you the opportunity to enjoy the benefits and protection of life insurance, while investing in professionally-managed fund offerings. . This means that not only do you get peace of mind from being insured, you also get the chance to earn passive income that can be partially withdrawn. Most VUL policies in the Philippines also come with health insurance coverage through riders, which will often cover critical illnesses and accidents.

The first step to investing in an insurance policy is to research all available products and insurance companies , and to assess which provider offers a policy that aligns with your protection and investment goals. What type of insurance do you think you need, and who do you intend to get it from?

Look at how you spend your money. When your hard-earned salary comes, what do you do with it? Do you end up blowing it all on material things, or are you saving a significant portion of it to pay yourself first? Remember, if you want to pave the way towards a more secure future, you should choose to allocate your money in sound investments that can help you achieve this goal.

Your 20s should be the time to begin your journey towards independence and growth, and laying down the foundations for a comfortable and sustainable future. So instead of spending most of your money on things that will eventually depreciate over time, it’s time to shift your mindset, and look towards how you can start investing in things that last.

If you are looking for a reliable partner to support you through this journey, Allianz PNB Life is here for you. We are one of the largest and most trusted insurance companies in the world, and are present in over 70 countries. We have been serving millions and helping them fulfill their dreams. It is time that we help you fulfill yours.

Be sure to check out AZpire Growth, the insurance solution that will manage your investment funds to ensure that your money will grow faster. Because we understand that your 20s are an exciting yet crucial period in developing a secure future, Allianz PNB Life will work with you to create brighter todays and even better tomorrows.