What Insurance You Really Need in Your 20s

When you're in your 20s, insurance probably isn't at the top of your to-do list. You're building your career, maybe freelancing or side hustling, figuring out rent, travel plans, bills, and let's be honest, insurance can feel like just another boring grown-up thing to think about. But here's the reality. Your 20s are actually the best time to lock in key insurance policies. Why? Because you're young, healthy, and your rates are going to be the lowest they'll ever be. And if you're self-employed or don't get benefits through a job, this is your safety net. So in today's video, I'm breaking down the five types of insurance you actually need in your 20s, why they matter, and how to pick a plan that best fits your life without breaking the bank. So first up is accident insurance. You could be walking your dog and trip on a curb. You could fall off a scooter, twist your ankle at the gym, or get into a minor car accident. It doesn't have to be dramatic for it to disrupt your life or your bank account. Accident insurance helps cover medical costs from unexpected injuries along with follow-up care and even lost income if you're out of work for a while. If you're freelancing, that's a big deal because if you don't work, you don't earn. This is where Lemonade is an awesome option. They make it super easy to get accident or renter's insurance, plus it's all managed through an app. Takes just a few minutes to get covered and their plans are affordable. If you work from home or live in a rented space, Lemonade's renter's insurance is a no-brainer. It can protect your laptop gear and other stuff you rely on for work or content creation if you're more of a freelancer. So why this actually matters in your 20s? You probably don't have a huge savings buffer yet and a small accident shouldn't wipe out your bank account. If you want to get started with Lemonade, I've left that link in the description for you. If you want to check out Lemonade yourself, I personally have it for pet insurance. It's super easy to use. That link is in the description below. Next is the big one, which is health insurance. A lot of people skip it in their 20s because they're healthy and rarely go to the doctor, but one ER visit or unexpected illness can cost thousands. Even just a few basic appointments out of pocket can add up If you're self-employed or aging out of your parents' plan, getting your own coverage through the marketplace or provider like Oscar Health makes a huge difference. Some plans even include mental health support and virtual visits, which is huge for flexibility. This is really important because avoiding health insurance to save money now can cost you way more later. If you want to keep working and living life on your terms, don't leave yourself unprotected. Next is term life insurance, and I know you might not think you need life insurance in your 20s, but here's the deal. Term life insurance is one of the most affordable types of coverage, and it's a smart move if you have any debt, financial obligations, or people you take care of. We're not talking about expensive whole life plans, we're just talking about basic term life, just enough to cover final expenses and make sure no one else is stuck with your bills, if something was to happen. State Farm offers a wide range of term life options, and what's great is you can talk to local agents to figure out what makes sense for you. They're a trusted provider with flexible plans that grow with you, and if you ever want to bundle it with renters, auto, or health coverage, you can do it all in one place. Why this is important in your 20s. It's cheap, it's simple, and it gives your loved ones peace of mind. If you want to explore different options through State Farm, I've left that link in the description for you. Next is critical illness, and I definitely don't think it's talked about enough. This pays you a lump sum if you were diagnosed with some major condition, even if you're young, and these things are possible in your 20s, and the payout can help you cover time off work, rent, or student loan payments, out-of-pocket treatment costs. If you're self-employed or freelancing, this is especially useful because there's no company disability plan backing you up. You can often add this to your plan through providers like Lemonade or State Farm, depending on your setup. Again, it's better to do this before anything happens, because once you get sick, you can't get covered. So why this is important in your 20s is it just protects your income and recovery time, so you don't have to stress about money while trying to heal. Last up is disability income insurance, and if you've never heard of it, don't worry. A lot of people skip over this, but it's one of the most important types of protection if you rely on your income to live, aka all of us. If something happens, injury, illness, surgery, and you can't work, this plan replaces a portion of your income while you recover. Again, if you are freelancing or self-employed, you don't have sick leave. This is how you keep paying bills, even if life throws you off course. State Farm has strong options here, and since you can bundle it with life or rentals insurance, it's definitely worth exploring as part of a more complete plan. And why this is important in your 20s is because your income is your biggest asset right now, and you need it to stay afloat. Okay, so let's kind of run it back. Here are the five types of insurances you should consider in your 20s, but if you're just getting started, focus on the top three must-haves first. So first off, health insurance. Medical bills can get expensive fast, even for small things. If you're self-employed or aging out of your parents' plan, this keeps you covered for doctor's visits, emergencies, and even mental health support. Next is accident insurance. Accidents happen when you least expect them. This helps you cover out-of-pocket costs from things like falls, sports, injuries, or minor mishaps, and especially useful if you don't have a big savings buffer. Next is term life insurance. It's one of the most affordable ways to make sure your loved ones aren't stuck with financial burdens if something was to happen. Even if you don't have kids yet, it's smart to lock in low rates while you're young and healthy. Then, as your income grows or your lifestyle changes, you can upgrade with critical illness insurance or disability income insurance. And just as a reminder, critical illness insurance, it pays you out if you're diagnosed with something serious, and it just gives you a financial cushion to cover time off work, treatments, and recovery. And then again, as we recap, disability income insurance is if you can't work because of an illness or injury. This protects your income, and it's especially important for freelancer or anyone without employer benefits. Look, insurance in your 20s isn't about fear. It's about freedom. It's knowing you can handle whatever life throws at you without falling into debt or putting pressure on your family. And when you're building your career, your business, or your life, it's one of the smartest moves you can make early on. If you want to get started with any of the insurance providers I discussed, I've left those links in the description. Lemonade and State Farm are both very great options and super easy to use. If this video was helpful, don't forget to like and subscribe to the channel, and leave any comments or questions below. We'd absolutely love to hear from you. Thank you so much for watching, and I will catch you in the next video.