Insurance Priorities for Young Earners: Health, Accident and Term Cover

Neha and Aman are 25 and earn about the same. Neha has no liabilities and freelances; Aman supports his parents and works for a company. If an accident kept either of them off work for six weeks, Neha's one month of savings could go on the hospital bill, so health insurance comes first for her, and some personal accident policies can pay a weekly amount while an injury stops her from working. Aman's company cover, paid leave and savings could carry him through, but if he died his parents would lose his support, so term insurance becomes a priority for him. Same age, same income, different priorities. Check what your cover and savings would miss, and what should come first within your budget. What a policy pays depends on its terms.