Buying insurance is not just about having extra money or hitting a certain age—it’s about protecting yourself at the right moment. From unexpected medical emergencies to sudden car accidents or the loss of income, insurance helps buffer life’s uncertainties. But when is the right time to buy it?
The answer isn’t always simple. In this article, we’ll walk through key life events, real-world examples, and data-backed scenarios to help you decide when buying insurance truly makes sense for you.
Understanding Insurance: A Quick Primer
Insurance is a financial product that transfers the risk of a significant loss (health, life, property, etc.) from you to an insurance company. You pay a relatively small amount (premium) regularly, and in return, the insurer promises compensation if something goes wrong.
There are many types of insurance, but for beginners, the most relevant are:
- Health Insurance
- Life Insurance
- Disability Insurance
- Critical Illness Insurance
- Property & Accident Insurance
Each serves a different purpose, and the best time to buy varies depending on the type.
Life Milestones That Signal It’s Time
1. Just Started Working
When you get your first full-time job, you may finally have the ability to afford insurance. This is also when you become financially independent, so protecting your income becomes important.
Recommended: Health, Accident, and Critical Illness Insurance
Why Now: You’re young and premiums are low. Waiting will only make them more expensive.
📖 Source: Investopedia – “Why You Need Insurance In Your 20s”
2. Getting Married or Starting a Family
When other people depend on your income, it’s a sign that life insurance and medical coverage become essential.
Recommended: Life Insurance, Family Health Plan
Why Now: You’re responsible for someone else’s well-being. A sudden accident could hurt them financially.
📖 Source: New York Life – “Insurance for Newlyweds”
3. Buying a Home or Taking a Loan
Major loans = major responsibilities. A proper insurance plan ensures your family won’t inherit your debt.
Recommended: Mortgage Life Insurance or Term Life
Why Now: Banks might not require it, but without insurance, your family could lose the house.
📖 Source: NerdWallet – “Why Life Insurance Matters When Buying a Home”
4. Health Changes or Diagnosed Conditions
If you’ve been diagnosed with a chronic illness or seen your health decline, insurance becomes harder and more expensive to get. Buying early while you’re healthy is key.
Recommended: Critical Illness, Health, and Disability Insurance
Why Now: Premiums skyrocket or applications may be denied after diagnosis.
📖 Source: Healthline – “How Pre-Existing Conditions Affect Your Insurance”
5. Becoming Self-Employed
Freelancers, small business owners, or anyone without employer benefits should act early.
Recommended: Private Health Insurance, Disability Income Protection
Why Now: No employer means no safety net. If you can’t work, your income stops.
📖 Source: Grange Insurance – “Insurance for the Self-Employed”
Common Excuses That Delay Buying
| Excuse | Why It’s Risky |
|---|---|
| “I’m still young.” | Young = cheaper premiums. Waiting = expensive and risky. |
| “I’m healthy now.” | Health can change instantly. You can’t buy insurance after an event. |
| “I don’t have dependents.” | Insurance isn’t just for others. Some types protect your income. |
| “It’s too expensive.” | Start small. Even basic plans offer huge benefits in crises. |
📖 Source: Policygenius – “Top Insurance Myths”
Cost Comparison: Early vs Late
Let’s take life insurance as an example:
| Age | Monthly Premium (20-year Term, NT$3M) |
|---|---|
| 25 | ~NT$300 |
| 35 | ~NT$500 |
| 45 | ~NT$1,000 |
Waiting 10 years can double or triple your cost—for the same coverage.
Case Study: Two Paths
Case A: Bought Early
- Emily, 27, bought NT$3M life + critical illness coverage.
- Monthly cost: NT$850
- At 35, diagnosed with thyroid cancer. Claimed NT$1.5M.
- Policy continues. No future premium hikes.
Case B: Waited Too Long
- Jack, 36, didn’t buy any insurance.
- At 39, diagnosed with a stroke.
- Couldn’t qualify for new insurance.
- Had to cover medical + rehab from savings.
Red Flags: When to Reconsider or Upgrade Coverage
Even if you already have insurance, here are signs you may need to upgrade:
- You had a child recently
- Your income increased
- You took out a big loan
- Your company stopped offering benefits
- You moved abroad or relocated cities
Summary Table: When to Buy What?
| Life Stage | Suggested Insurance |
|---|---|
| Student / First Job | Health, Accident |
| Getting Married | Life, Health |
| Expecting a Child | Life, Critical Illness |
| Home Buyer | Mortgage Life, Property |
| Self-Employed | Health, Disability |
| Retiring | Medical Supplement, Long-Term Care |
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