ARTICLE
Why Should Gen Z Start Considering Insurance?
8-min read
Updated on 2026-9-16
Author: AIA Content Editorial Team
For many Gen Z who have just entered the workforce, insurance may seem like something that can wait. After all, when you're young and healthy, it often feels more important to spend your budget on travel, hobbies, savings, or investments rather than insurance.
However, protection planning is not just for retirees or married individuals. As young adults become more financially independent, they also face unexpected health and financial risks. As work circumstances, lifestyles, or health conditions change, protection needs may evolve as well.
For Gen Z who are just starting out in their careers and working with a limited budget, why is now the critical time to take control of their own protection planning?
3 Key Reasons Why Gen Z Should Start Buying Insurance
1. Health Conditions May Affect Insurability, Making Early Protection Planning Important
When assessing an insurance application, insurers generally take into account factors such as age, health condition, and medical history.
Planning insurance coverage early while you are young and in good health may help reduce the likelihood of health-related factors affecting the underwriting outcome when applying for insurance. In contrast, if you wait until health issues or signs of chronic conditions emerge before considering coverage, insurers may assess the individual risk and impose additional premium loadings, exclusions for specific conditions or organs, postponement of coverage, or even decline the application.
In short: Protection planning is not something that becomes more worthwhile the longer you wait. Planning protection needs while healthy may provide greater flexibility when considering available coverage options in the future.
2. Don't Rely Solely on Your Company's Group Medical Coverage or a Policy Purchased by Your Parents
Young professionals may already be covered by their employer's group insurance or a policy purchased by their parents years ago. However, both may have hidden protection gaps:
- Group insurance: The scope of coverage generally changes according to your employment status. If you change jobs, resign, start a business, or retire in the future, the coverage may be terminated or significantly reduced. If health issues arise during this period, your options for obtaining additional personal coverage later may also be affected.
- A policy purchased by your parents: These plans were often designed based on your needs as a child or student and may not adequately support your healthcare needs and responsibilities as an adult, such as renting independently, buying a home, or starting a family.
Once you enter the workforce, taking the initiative to identify protection gaps and building a protection plan that belongs to you is a more sustainable long-term approach.
3. Consider the Potential Financial Impact of Unexpected Medical Expenses
Many people believe they only need insurance after they earn more. However, from a risk management perspective, those who have not yet accumulated sufficient savings are often less able to absorb unexpected financial shocks.
According to the Health Bureau's figures for the 2024/25 financial year, private healthcare expenditure accounted for 48.4% of Hong Kong's total healthcare spending.1 In other words, nearly half of all healthcare costs in Hong Kong are paid out of pocket. For young adults who are just beginning to build their careers and financial foundations, an unexpected hospitalisation or surgery can place significant pressure on their savings. Depending on individual circumstances, appropriate protection planning may help reduce the financial impact of unexpected healthcare expenses.
What Types of Protection Might You Consider First? Medical Protection Is One Option Commonly Considered by some Gen Z
After understanding the importance of protection, many Gen Z ask: "If I have a limited budget, what should be the first type of insurance I consider?"
While everyone's needs are different, medical insurance is often one of the first types of protection that many young adults may choose to consider as part of their overall protection planning.
The reasons are straightforward:
- Illnesses Can Affect People of Any Age: People of all ages may require medical consultation or treatment due to illness or accidents, and the associated healthcare expenses can often be difficult to anticipate. In addition, some illnesses, such as cancer and cardiovascular diseases, have shown a trend of affecting younger individuals in recent years2,3. Gen Z should not overlook potential health risks simply because they are young.
- Improve your chances of recovery: When health issues arise, timely access to appropriate medical services and treatment arrangements may support an individual's treatment and recovery journey.
- Reduce the burden on yourself and your family: Young adults may not yet have sufficient emergency savings to cover substantial hospitalisation or surgical expenses.1 When health problems occur, the impact extends beyond the individual. Family members may also need to share the financial burden, caregiving responsibilities, and the stress that comes with them. Establishing medical protection early may help alleviate part of the financial burden associated with healthcare expenses.
What Are the 3 Key Factors to Consider When Choosing Medical Insurance?
When selecting a medical insurance plan, it is worth paying attention to the following:
1. Does It Cover Major Hospitalisation and Surgical Expenses?
Healthcare costs are often driven by hospital stays, surgeries, anaesthesia, and related treatments. Therefore, it is important to confirm whether the coverage limits are sufficient and whether the benefits meet your personal needs.
2. Does It Offer Guaranteed Renewal?
Health conditions can change over time. Choosing a plan with guaranteed renewal provisions, such as a Voluntary Health Insurance Scheme (VHIS) certified plan recognised by the Health Bureau, may provide continued eligibility for renewal subject to the applicable policy terms and coverage.
3. Does It Provide a Comprehensive Medical Network and Support Services?
Beyond reimbursement, support throughout the treatment journey is equally important. Services such as doctor search assistance, pre-authorisation arrangements, and rehabilitation support may provide additional support throughout the treatment process.
Take AIA Voluntary Health Insurance SelectWise Scheme as an example. The plan offers lifetime guaranteed renewal, a lifetime limit of up to HKD60 million and annual limit of up to HKD12 million with no itemised benefit sublimit for key medical expenses, subject to the terms, conditions and benefit limits of the policy.4 It also provides access to the SelectWise Medical Network5, and supports you at every touchpoint — from doctor search to diagnosis, treatment, payment and recovery — integrating the key stages of your medical journey, providing additional support throughout the treatment journey, subject to the applicable terms, conditions and scope of available services.
How Can You Start Reviewing Your Protection Needs?
You may wish to review your protection needs by considering the following questions:
Question 1: What Protection Do I Currently Have?
Review your existing employer-sponsored medical coverage, policies purchased by your parents, and any personal insurance plans. Make a list of the coverage scope, benefit amounts, and policy terms.
Question 2: Are There Any Gaps in My Current Protection?
Compare your current healthcare costs and income level, and assess whether your existing coverage would be sufficient if hospitalisation became necessary.
Question 3: What Are My Upcoming Life Plans?
Are you planning to change jobs, start a business, study overseas, buy a home, or get married? Different life stages often come with different protection needs.
Conclusion: Build a Strong Protection Foundation Early
For Gen Z, buying insurance may not be the most exciting spending decision, but it could be one of the most important risk management tools you'll ever own.
Building your own protection foundation while you're young and healthy not only gives you greater flexibility when applying for coverage but also reduces the need to rely heavily on employer benefits or family arrangements. Especially when your income and savings are still growing, medical insurance may play a role in helping you prepare for unexpected healthcare expenses.
There is no one-size-fits-all solution when it comes to protection planning. The key is to start understanding your needs early and continue reviewing and adjusting your coverage as your life evolves, so you can provide greater peace of mind for yourself and your family in the years ahead.
The above information is for Hong Kong only. The content contains general information only and shall not constitute, nor be construed as, any sales advice, investment or insurance advice, product recommendation, solicitation and/or offer of services. This information does not take into account any person's financial situation or needs, and should not be relied upon as the sole basis for making any financial or insurance decision. Customer must complete the Financial Needs Analysis before applying for any insurance product. The product information on this website is for reference only and does not contain the full terms of the product. For details of the product features, terms and conditions, exclusions and key product risks, please refer to the relevant product brochure and policy contract of the relevant products. In case you want to read a sample of the policy contract before making an application, you can obtain a copy from AIA.
AIA does not guarantee the accuracy or completeness of the content and information contained herein. AIA shall not assume any liability in respect of the content, services and/or products referred to in this information.
This article is owned by AIA, and may not be copied or reproduced without AIA's written consent. You may not copy or store this content on any other website or content platform. AIA reserves the absolute discretion to suspend or remove this article at any time without prior notice. In the event of any infringement and/or legal issues, AIA reserves the right to take appropriate legal action and seek compensation.
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- Health Bureau, HKSAR Government. (2026). Hong Kong's Domestic Health Accounts 2024/25. Retrieved from https://www.healthbureau.gov.hk/statistics/en/dha.htm
- Hong Kong Cancer Registry. (2025). Overview of Hong Kong Cancer Statistics 2023. Retrieved from https://www3.ha.org.hk/cancereg/pdf/overview/Overview%20of%20HK%20Cancer%20Stat%202023.pdf
- Department of Health, Elderly Health Service. (n.d.). Coronary heart disease. Retrieved from https://www.elderly.gov.hk/english/health_information/hypertension_heart_disease/chd.html
- No itemised benefit sublimit for medically necessary services, provided the claims will be evaluated based on reasonable and customary charges. Claim amount is subject to the benefit limits as set out in the benefit schedule including annual benefit limit, lifetime benefit limit and annual deductible. Please also refer to item 1 of "Product Limitation" on page 28 of the product brochure for the details and definition of "reasonable and customary" and "medically necessary". Benefits payable related to the confinement are subject to the applicable covered room.
- SelectWise Medical Network is only available in Hong Kong and refers to designated third party medical network service providers engaged by AIA. The designated third party medical network service providers are independent contractors and are not agents or employees or representatives of AIA. AIA does not guarantee the provision of services or treatment by a particular medical network / service provider or the number of medical network(s) / service provider(s) available. For details, please refer to the product brochure.
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