Insurance, at its core, is paying a relatively small, regular amount to protect yourself against a large, unpredictable financial loss, and in your 20s specifically, a couple of types genuinely matter far more than the rest, even though the insurance industry markets many different products to this age group.
Health insurance is the most immediately important, since a single serious hospitalisation without adequate cover can wipe out savings very quickly, and many young earners simply assume their employer group health cover is sufficient without actually checking its specific limits, exclusions and gaps, which is worth doing early rather than discovering the hard way. Term life insurance becomes genuinely relevant specifically once someone else financially depends on your income, a spouse, parents you support, or children, and is typically not a priority for a single young earner with no dependents yet, despite how commonly it is pushed at this age. Other types, such as vehicle insurance, are often legally required rather than optional if you own a vehicle, so that decision is largely made for you already.
Be genuinely wary of insurance sold bundled together with an investment product, since these combined plans are frequently more expensive and noticeably less effective at either function, insurance or investment, than simply buying a straightforward, separate term policy alongside a separate, more transparent investment of your choice. Whatever policy you do consider, read its specific exclusions carefully before buying, since what a policy explicitly does not cover matters just as much as what it does, and this detail is very often glossed over in the initial sales pitch.
Example: A young earner who assumed their employer health cover was sufficient checked its actual limits after a colleague hospitalisation revealed a significant gap, and bought a small additional personal health policy to cover that gap before it became a real problem for their own finances.
One practical tip: Check the actual limits and exclusions of your employer health cover rather than assuming it is sufficient, and be genuinely cautious of insurance bundled with an investment product, since a simple, separate term policy alongside a separate investment is usually more effective and transparent than a combined plan.