【Buy Insurance with Confidence】 Pressured by Peers to Buy? 4 Major Concerns for Fresh Graduates Buying Insurance

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"Medical insurance, critical illness insurance, savings insurance, travel insurance, accident insurance…" With so many types of insurance available, many Fresh Graduates just entering the workforce face a significant dilemma: whether to buy insurance. This is especially true when friends who work as insurance agents or brokers often persuade them, making it hard to resist signing a policy on impulse.

However, it is crucial not to act impulsively due to friendship. The most important thing is to know how to compare and choose insurance products that suit your needs. Below are four common questions and answers for Fresh Graduates regarding insurance purchases.

1. Limited budget, what to buy first?

Fresh Graduates do not typically earn HKD 50,000 per month right after graduation. With limited funds, priority should be given to purchasing medical insurance, such as the Voluntary Health Insurance Scheme (VHIS), as health protection is a concern for everyone. Additionally, some may mistakenly believe that since their company provides medical coverage, they do not need to buy their own. However, it is essential to carefully review the coverage scope and limits of the company’s medical plan. If it only includes basic outpatient benefits, it may be insufficient for major health issues like hospitalisation or surgery. Relying solely on company medical insurance could be inadequate, especially since young people often change jobs frequently, and not every company offers comprehensive medical coverage. During the transition period between jobs, there may be no coverage at all. Therefore, purchasing your own medical insurance is the safest option.

2. Is medical insurance expensive?

For those just starting their careers, the annual premium of a few thousand dollars for medical insurance may seem expensive. However, if you break it down over 365 days, it amounts to just over ten dollars a day, roughly equivalent to a single transport fare. Compared to the medical expenses of hospitalisation, which can easily reach tens of thousands of dollars, the premium is a drop in the bucket. For instance, a common injury like a torn ACL can cost up to HKD 160,000 in medical expenses. Trying to save a few dollars a day on insurance premiums could lead to significant financial loss in the event of injury or illness.

3. Should I add critical illness insurance?

If your budget allows, many people opt to purchase critical illness insurance in addition to medical insurance. If the insured is diagnosed with a specified illness, they receive a lump-sum cash payout. This serves to compensate for lost income due to inability to work during illness and to cover gaps in medical insurance protection. In fact, critical illness insurance is divided into term critical illness insurance and whole-life critical illness insurance. The main difference is that the former has cheaper premiums, while the latter includes a savings component and focuses on long-term protection.

4. Should I buy savings insurance?

There are many investment tools in the market to meet consumers’ savings needs, and savings insurance is one of them. It is further categorised into short-term savings insurance and long-term savings insurance. If Fresh Graduates are focused on relatively short-term, stable returns, they can consider short-term savings insurance with a 100% guaranteed return. It is not difficult to find products in the market with annual returns exceeding 3%, which is far higher than bank fixed deposits and does not carry the risk of significant fluctuations associated with stocks.

Many people assume that insurance products are largely similar, so choosing a trusted insurance broker or agent is enough. In reality, the coverage and pricing of insurance products vary greatly. It is advisable to use the 10Life Insurance Decoder to compare insurance products.

Note:

1. This article was compiled by 10Life using market information collected from various sources. It is for general reference only and does not take into account any individual needs or suitability. It should not be regarded as sales advice. Before purchasing insurance, you should discuss with a licensed insurance advisor to find a suitable insurance plan and refer to the information provided by the insurance company.

2. Last updated: 14 January 2022.

This English version of this article has been generated by machine translation powered by AI. It is provided solely for reference purposes. In the event of any discrepancy or inconsistency between this translation and the original Chinese version, the Chinese version shall prevail.

Last updated: 9 Apr 2026

10Life Editorial Team

Our team of professional content researchers focussing on insurance

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10Life Editorial Team

Our team of professional content researchers focussing on insurance

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10Life Product Comparison and 10Life Insurance Ratings are developed by 10Life Financial Limited, an authorised insurance broker company licensed with the Insurance Authority under License Number FB1526. 10Life Product Comparison and 10Life Insurance Ratings are developed for generic customer segments using mathematical calculations based on product information, facts and data, and are not influenced by any partnerships with or fees received from insurance companies. Any information on 10Life Platform ("10Life Information"), including but not limited to Product Comparison, Product Ratings, Blog Articles are intended for general education purpose and reference only. None of the 10Life Information is intended, nor should they be considered or relied upon, as regulated advice, insurance, financial, investment or professional advice, recommendation, approval, endorsement, invitation or solicitation in respect of any insurance, financial or investment products. 10Life Information does not take into account your individual needs. Reading 10Life Information should not be considered as conducting a suitability assessment, and is not sufficient to form the basis of any decisions to purchase any insurance products. You should rely on information authorised by insurance companies, carry out your own research and/or seek independent advice from licensed intermediaries before purchasing any insurance products or making any insurance decisions. While reasonable effort is used when collecting, validating and updating 10Life Information from various channels, none of 10Life Group and its subsidiaries, affiliates, agents, directors, officers and employees will be responsible for any liability, claim or loss arising from or associated with you using 10Life Information. No warranty, representation or guarantee is given by 10Life Group and its subsidiaries on the accuracy, completeness and timeliness of the information. If you have any questions on 10Life Product Comparison and 10Life Insurance Ratings, please email us at enquiries@10life.com

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【Buy Insurance with Confidence】 Pressured by classmates to buy? 4 Major Concerns for Fresh Grads Buying Insurance

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