Why it’s wise to start insurance at an early age

Starting insurance early is one of the smartest financial decisions a person can make—especially in Bangladesh, where insurance penetration remains low while the need for financial protection is rising. Early adoption not only safeguards against unforeseen risks but also brings long-term financial advantages that grow in value over time.

One major benefit of starting young is the cost advantage. Premiums for life and health insurance are typically much lower for younger individuals, as they pose lower health risks to insurers. Locking in these low premiums early results in significantly lower costs over the policy's lifetime compared to starting coverage later, when premiums rise due to age and health issues. This is particularly important for young professionals in Bangladesh, many of whom are just beginning to build their financial foundations.

Early insurance also allows more time to build cash value in policies like whole life or endowment plans, which combine protection with savings. These products grow in value over time, offering maturity benefits or bonuses. For example, MetLife Bangladesh's "My Child's Education Protection Plan" enables parents to save for future education while ensuring financial protection in case of an untimely event. Starting early helps policyholders maximise compound interest and long-term bonuses—an essential advantage in a developing economy.

Health insurance is another key area where early enrolment pays off. Younger applicants are more likely to be accepted without medical exclusions or waiting periods. They also avoid costly out-of-pocket healthcare expenses later in life. Many insurers offer no-claim bonuses, providing discounts or increased coverage for those who remain claim-free. Accumulating these benefits over time makes insurance more affordable and comprehensive with age.

In a country like Bangladesh, where medical costs are rising and quality care can be expensive, early health insurance ensures peace of mind. For students and young professionals, affordable plans—such as the one offered at the Institute of Health Economics—cover both inpatient and outpatient services at modest premiums. Starting early means protection is in place before any health shocks occur, reducing financial strain on individuals and their families.

Another compelling reason to begin insurance early is the financial security it provides to dependents. Life insurance ensures that in the event of the policyholder's death, the family receives support for ongoing expenses, debts, or long-term goals such as children's education. Many education protection plans in Bangladesh guarantee uninterrupted schooling even if the main breadwinner passes away. Getting insured before these responsibilities arise builds a strong safety net as family and financial obligations increase.

Beyond protection, early insurance fosters disciplined financial habits. Regular premium payments encourage saving and budgeting. Policies with investment elements complement other financial tools, helping build a diversified portfolio. This is crucial in Bangladesh's changing financial environment, where long-term planning is needed to cope with rising education, healthcare, and retirement costs.

Starting early also gives policyholders more flexibility and choice. Younger people often have access to a wider range of products, including policies with better terms and optional riders for enhanced coverage. As people age, health issues may limit options or raise costs. Enrolling early enables adjustments over time, such as increasing coverage or adding benefits as circumstances change.

As Bangladesh's insurance sector continues to evolve, young adults who secure coverage early are positioning themselves for a more secure and financially stable future. Early action leads to lower costs, better coverage, and long-term peace of mind. Delaying insurance, on the other hand, often means higher premiums and increased vulnerability to financial risks that could have been avoided with timely protection.