Author Bowtie Team
Updated on 2025-06-12
Disclaimer: This article is translated with the assistance of AI.
Ever wondered when to start buying insurance? From medical and critical illness to life and accident coverage, which policies should you prioritize first, and which might not be essential? Bowtie team explores tailored insurance strategies for different life phases!
Why Do We Need Insurance?
Insurance’s true purpose is to transfer the financial risks from events like illnesses, accidents, and death to an insurance company through a policy contract. This protects you and your family, offering a level of financial support if these unfortunate events happen, so you won’t disrupt your financial plans or face total financial ruin.
At different stages of life, the risks you and your family face vary, so the protection you need changes too. The last thing you want is to buy a policy to support a friend who’s an agent—just going along with suggestions without considering your actual needs. As a policyholder, you should carefully choose insurance products that match your protection requirements before making a decision.
Ages 0 to 18: From Birth to Middle School
Medical Insurance: Whether it’s newborns or preschoolers, their immune systems are weaker, making them more prone to illnesses like the flu, hand-foot-and-mouth disease, chickenpox, roseola, and gastroenteritis. In severe cases, this could lead to dehydration or high fevers. Having a medical insurance policy with real reimbursement can help if your little one needs hospitalization, allowing you to opt for a private hospital for quicker care and a room assignment compared to public ones.
When parents are buying coverage, keep in mind that many private hospitals require infants or young children with infectious symptoms to stay in less crowded rooms, like semi-private or private wards. If your budget allows, go for an insurance plan that covers those ward levels.
As kids enter primary or middle school, they still need medical insurance, but with their growing strength and better immunity, a plan covering standard wards might suffice. However, parents should check the coverage scope—after all, schools often have overseas trips or international sports events, and kids might travel more with you. A medical insurance with broader geographical coverage will be more practical.
Critical Illness Insurance: If you want to boost protection for kids against cancer or other serious diseases, consider a term critical illness insurance policy. If your child is unfortunately diagnosed, your family gets a lump-sum payout with no restrictions, giving you the flexibility to take time off work to care for them or cover medical costs without added stress.
Accident Insurance: Once kids start school, they’re more active with running, playing, sports, and extracurricular activities, which can lead to accidents. Minor ones might involve scrapes or stitches, while twists, fractures could need physical therapy or even surgery. A Bowtie Accidental Medical Insurance can reimburse these costs on a real basis, covering outpatient visits, physical therapy, traditional Chinese bone-setting, surgery, and hospitalization.
Ages 19 to 39: From University to Entering the Workforce
Medical Insurance: After graduating and joining the workforce, factors like high work stress, low physical activity, and poor eating habits mean many in their 30s are already dealing with issues like high blood pressure, cholesterol, or diabetes—hinting at future health risks. Even with a tight budget at the start of your career, it’s wise to get at least basic coverage, like medical insurance.
If your company offers group medical insurance as a perk, you could opt for a premium plan that includes a deductible option for full reimbursement. This way, you make the most of your employee benefits without overlapping with a personal policy.
Plus, if you have a partner or kids, their health risks are your risks too. Reviewing and securing medical coverage for the whole family early on builds a solid safety net.
Critical Illness Insurance: Once you’re in the working world, you’re likely supporting your parents or have started a family of your own, making you the financial backbone. Serious illnesses like cancer or heart disease are hitting younger people more often, and cases in the 30s aren’t rare anymore. A critical illness policy provides a large lump-sum payout if diagnosed (aim for coverage that’s 2-3 times your annual income), so you can take a break from work to focus on treatment and recovery without income worries.
Life Insurance: Beyond critical illness insurance, life insurance adds another layer of protection for you and your loved ones. If the unthinkable happens and you pass away, the policy pays out to your designated beneficiaries. This financial support can help your parents, partner, or children cover essentials like mortgage payments, loans, and daily expenses during a tough time, easing the burden of loss.
Insurance Tips (Infobox)
Young working adults just starting out often have limited income. Besides covering daily expenses, they also need to support their parents and build a family, making financial burdens quite heavy. If you’re looking for high-value insurance products, consider these suggestions:
- Medical insurance that can be purchased online without intermediaries: With no intermediary commissions and technology helping to cut operating costs, this type of medical insurance premiums are often more competitive.
- Life and critical illness insurance without savings components: Term life and term critical illness products offer pure protection with no savings or investment elements, so for the same coverage amount, their premiums are much lower than similar savings-type insurance plans.
Ages 40-59: Navigating Your Career Peak
Medical insurance: As you hit middle age, your career might be at its peak, but your body’s functions start to decline, with risks like high blood pressure, high cholesterol, and cancer on the rise. If you don’t have personal medical insurance yet and your health is still good, seize this ‘last chance’ to buy it and prepare for retirement. After all, company-provided insurance will end upon retirement; if you’ve had serious illnesses, insurers might reject your application, add exclusions, or charge extra premiums.
If you’re already holding medical insurance, take the time to review if your coverage scope and limits are sufficient, and assess your financial ability post-retirement. Don’t blindly go for top-tier plans—remember, medical premiums are a long-term expense, so choose what fits your budget.
Critical illness insurance and life insurance: At this stage, many are at the height of their earning potential, but debts from buying a home or car might have increased since your 20s or 30s. It’s worth checking if your existing life and critical illness coverage amounts are adequate and adjusting them if needed.
Ages 60-79: Retirement Years
Medical insurance: After 60, your medical insurance might finally come into play, with heart issues, chronic diseases, and bodily decline possibly emerging—and in worse cases, strokes or cancer. So, keep your medical coverage going even after retirement!
When considering new policies or switching, look at plans that fully cover common medical needs (with an annual limit) and might be more affordable. If your budget is really tight, at least hold onto a basic plan like the VHIS Standard Plan to help cover some medical costs when needed.
Critical illness and life insurance: Whether to keep critical illness insurance after 60 depends on your employment status and needs. If you’re still working and the main breadwinner, or want more comprehensive coverage, it’s worth retaining these policies as long as you can afford it.
Age 80 and Above: Senior Years
Medical insurance: Past 80, health issues tend to pile up, and public healthcare is often overwhelmed—going private can speed up diagnosis and treatment. Premiums for seniors are pricey (for example, a non-smoking 80-year-old woman might pay over HK$10,000 annually for the VHIS Standard Plan, and even more for VHIS Flexi Plans at HK$20,000 to HK$40,000 a year), but compared to private hospital bills in the tens of thousands, it’s a small price. If feasible, keep at least a VHIS Standard Plan for guaranteed renewal up to age 100.
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