Your 20s are the prime time of your life. This is the time you make life changing decisions.

Many people start working in their 20s. Unfortunately, not all them are educated about financial planning, leading them to make decisions they regret later in life. To ensure that doesn’t happen to you, we compiled a list of financial products you need to have in your 20s.

1. Retirement plan

Many young adults put off saving for their retirement because they think it’s something for older people, but old age happens to all of us, and sooner than you think.

“Consistently put a little away and don’t touch it until you kick off your heels and leave the rat race behind,” says Althea Maber, business development consultant at Itransact Investment Platform.

If you don’t have a plan in place, now is the time to change. Research your options and speak to a registered financial adviser to give your tale the happy ending it deserves.

2. Life Cover

Like the retirement plan, many young people do not buy life insurance until they are older.  However, your life cover comes in handy in the event of retrenchment, disability or death.  You can even use your life insurance to pay your student debt when you can’t.

Life insurance is a convenient way for the lending institution to get its money back since the lender will then be the only beneficiary of the life policy and do not have to carry the risk of the deceased estate being insolvent, says Mbonisi Tshabalala, articled planner at Chartered Wealth Solutions.

The longer you wait to buy life insurance, the greater the chance of paying higher premiums.

3. Funeral Policy

As much as we don’t want to think about death, it does happen. You may think that you’re young and you still have many more years to live, but that’s not guaranteed.

A funeral policy eases financial worry for your family in the event of your death, says Cita Penn, head of client solutions at Sanlam Developing Markets.

4. Credit card

Obtaining a credit card will assist you in building your credit score.  This will help you in future when you want to buy a car or your dream home. Before they lend you money, creditors will check whether you are a good payer or not.

However, make sure you never default on payments.

According to Mellony Ramalho, group executive for the sales and branch network at African Bank, if you default on payments, your credit profile will be affected.  This could make it much more difficult for you to obtain credit in future years.

“While adverse legal information is cleared as soon as the account is settled, the negative repayment history  remains for a couple years,” warns Ramalho.

5. Medical aid

You may be young and healthy now, but that does not mean that you are immune to illnesses. Medical aid will come to your rescue when you find yourself with unexpected medical costs.

If you find yourself conflicted about the products you need, do not hesitate to consult an experienced financial adviser to help you plan your finances while you’re still young.

This article has been prepared for information purposes only and it does not constitute legal, financial, or medical advice.The publication, journalist, and companies or individuals providing commentary cannot be held liable in any way. Readers are advised to seek legal, financial, or medical advice where appropriate.