Navigating Life's Milestones: Affordable Insurance for Gen Z & Young Adults

Young adulthood is a time of change and growth. It can be challenging, with many new experiences and responsibilities, but rewarding as well.

This article covers the major life milestones during young adulthood and affordable insurance solutions that pay for achieving these remarkable moments.

What are life milestones?

Life milestones are significant occurrences or accomplishments that signify crucial and critical times in a person's life. They include a wide range of events, including graduating from school, finding a job, getting married, starting a family, buying a home, and retiring.

These turning points can impact various aspects of your life, including financial status and thus, insurance requirements. Don’t let these important moments slip into distant memory as you or a loved one age.

Life milestones for Gen Z and young adults

While life milestones take place throughout our lives, the following are some relevant ones for young adults.

Changing life stages

Generation Z and young adults experience a series of changing life stages as they transition from youth to adulthood.

Everybody experiences these phases differently, but typical themes that seem to surface include the following:

Career beginnings

There are excitement and difficulties associated with beginning work or joining a profession. Many people encounter different challenges as they start their careers; thus, having financial security is essential.

Young adults start working after high school or after completing their tertiary education. Building professional networks, looking for a job, and exploring career options are all part of this phase. Furthermore, they may need help to obtain steady work due to the competitive labour market, resulting in uncertain and job-searching periods.

Most individuals begin their careers with the burden of repaying student loans. As a result, they need help managing their debt, which may hinder their capacity to invest, save, or make critical financial decisions.

Additionally, now that the gig economy is growing, more work is contract-based and temporary. As such, young adults frequently have variable incomes due to the nature of their employment. Conventional employee benefits like paid time off, retirement plans, health insurance, and job stability are not available to them.

Nonetheless, it remains that young individuals navigating the start of their careers still need some financial stability. To guard against unanticipated events, one should consider insurance coverage, such as life, health, and renters' or homeowners' insurance.

Relationships and marriage

Some may enter long-term commitments or marriages during their 20s and 30s.

Getting married frequently entails sharing duties and merging finances. Financial stability and safety may not be easy for individuals who get married young as they’re just starting out in the workforce.

As such, young adults have been increasingly likely to postpone marriage in recent years due to job objectives, educational goals, and financial constraints. Unmarried couples may also put off achieving common financial objectives like property ownership, parenthood, or college savings.

This delay necessitates a longer-term financial planning perspective and may affect the timing for reaching these objectives.

Parenthood

Starting a family is a life-changing and beautiful experience. However, it entails numerous obligations and adjustments that call for thorough preparation and consideration of several issues, including monetary ones. After becoming a parent, a person's primary concern is usually giving their kids a safe and stable future.

Hospital bills during childbirth can vary widely depending on location, type of delivery, medical services, and any complications. Pregnancy requires health insurance to pay for these expenses.

Infant necessities, including clothes, cribs, car seats, diapers, and other nursery supplies, should be budgeted for. Daycare expenses might be a significant factor if both parents are working. Costs for nurseries, nannies, and babysitters need to be included in the budget.  

Health and well-being

Two essential components of life are health and well-being, which may be seen as lifelong goals people strive to uphold.

Focus on mental health

Mental health conditions, such as anxiety and depressive disorders, are getting more common as young adults try to navigate this challenging period. The strain of having to fulfil financial commitments, future uncertainty, and the economy's effects can affect mental well-being.

Many young adults face significant student loan debt as school expenses rise. The stress of repaying debts can lead to emotions of being overwhelmed and experiencing financial strain.

It might be nerve-wracking for them as they enter a competitive employment market. High unemployment or underemployment rates result in financial instability, causing anxiety and depression. Individuals in the gig economy have little job security and get inconsistent pay and benefits, which also leads to financial stress and future uncertainty.

For those seeking mental health support consider PRUAll Care a revolutionary plan that equips you with additional benefits to stand strong against serious illness.

 

Healthcare costs

Young adults are concerned about rising healthcare costs and the need for financial security against unforeseen medical bills.

Many may lack access to full health insurance because employer-sponsored plans are unavailable or because they believe they are healthy and, thus, don’t warrant coverage.

Substantial medical expenses can potentially disrupt their financial stability. The price of prescription medications can be a significant concern, especially for those with chronic conditions.

They need financial protection systems to prevent the adverse effects of unforeseen medical bills. Hence, health insurance is an essential shield against medical costs from illness, accident, or disability.

For example, critical illness insurance plans may provide lump sum payments in the case of a particular diagnosis. It can be helpful since it gives cash assistance during serious health difficulties.

Long-term planning

Besides relationships, career, and health, young adulthood is also associated with life milestones that require long-term planning.

Homeownership

For many, owning a home is a goal as it's a significant accomplishment and a sign of financial stability. They could see it as a means of gradually increasing equity and a long-term investment.

However, owning a home requires a substantial financial commitment. Long-term planning can help one to save and prepare for financial obligations like a down payment, property taxes, and mortgage payments.

For those considering starting a family, homeownership may be related to giving children a stable and safe environment to grow up in. Solid budgeting practices and realistic, attainable homeownership objectives are needed, depending on financial circumstances, with the help of long-term planning.

Retirement concerns

Young adults must understand the significance of retirement planning from an early age for several reasons:

• Provide a substantial benefit because of compound interest's potency. Over time, earnings from investments produce further gains.

• Time to save enough money to support their ideal lifestyle and pay for retirement healthcare.

• Adaptability to unanticipated events, market swings, and changes in the economy.

• Increased options for investing.

• Opportunity to educate oneself on financial literacy, investment methods, and the range of retirement savings choices accessible.

 

 

Although retirement may seem far away, planning for this milestone is essential, and starting as soon as possible is the best way to go.

How can insurance help young adults navigate life milestones?

While life milestones are rewarding and happy moments, they often require extra financial commitment. This can be burdensome, and many put off milestones such as marriage, parenthood, homeownership, and long-term planning for health and well-being.

One effective way to help young adults navigate and achieve these moments is through insurance.

For instance, Prudential’s PRUMan & PRULady are critical illness insurance that addresses needs specifically for men and women, such as gender-specific illnesses. It also provides Fertility Care for couples who struggle to conceive, Pregnancy Care and Baby Care benefits, and cash rewards for achieving life milestones.

Gender-specific illnesses

PRUMan & PRULady address the unique health needs and risks that both men and women, including gender-specific illnesses like breast cancer, cervical cancer and testicular cancer.  Policyholders will receive 50% of the basic sum assured upon the diagnosis of carcinoma-in-situ and 100% sum assured if they receive a cancer diagnosis.

Pregnancy and Fertility Care

In addition, we provide a Fertility Care and Baby Care benefit under PRULady to help you reach your goal of becoming a parent and building a family.  

Pregnancy Care Benefit and Baby Care Benefit are provided until the age of 50, whereas Fertility Care Benefit are covered until the age of 45.

Wellness Care

PRUMan & PRULady also offer Wellness Care coverage up to RM5,000 per life to support your overall well-being.

We understand the significance of one’s mental well-being. Thus, under Wellness Care, policyholders can seek psychotherapy treatment or psychiatric visits for depression and anxiety, both of which are conditions that affect many young adults.

Cash rewards for life milestones

One unique feature of PRUMan & PRULady is the cash reward benefit for achieving life milestones. Policyholders are entitled to receive 3% of the Basic Sum Assured (BSA) for any 3 of the following life milestones:

• Marriage

• Owning a property

• Owning a car

• Having a child

• Job promotion

• Doubling of annual income

• Retirement at age 55

• Every 10th wedding anniversary

• Travelling to 10 different countries

• Completion of 3 fitness goals with certification

 

 

Where to get affordable insurance for young adults?

Prudential’s PRUMan & PRULady are both affordable insurance solutions for young adults who are starting out in life. The monthly premiums starts from as low as RM53.

Conclusion

Understanding these life milestones can help you prepare for the future, take financial factors like saving, budgeting, and insurance coverage into account and evaluating your insurance requirements at different phases of your life.

Check out Prudential's wide range of insurance solutions and financial products that will protect you if something unfortunate occurs:

Insurance for Young Adults | Investment-linked Life Insurance | Medical Insurance | Critical Illness Insurance | Insurance for Mother & Child