As the largest and most educated generation, you would expect that millennials would take insurance coverage seriously. Sadly, studies reveal that one in four adults between 18 years to 29 years do not have health insurance. Furthermore, millennials are less likely to take up other forms of insurance like auto, life, home, and renters. As the most educated generation, millennials need to learn the importance of having insurance.
According to research and interviews surveyed among millennials, it was found that millennials view insurance as an unnecessary expense. To them, they don’t need it and won’t need it any time soon. To the older generation, they appear as a generation that is subservient of the punches and curve balls that life throws at people each day.
While insurance does not inspire excitement, its impact on one’s life is virtually unrivaled. At some point in life, an individual will experience misfortunes such as theft, flooded home, fire, car accident, or others. Misfortunes are not planned and since they occur without any prior confirmation, it is wise to protect yourself.
Insurance provides peace of mind especially when faced with difficult situations. It can help you to settle financial problems brought about by misfortunes. Furthermore, getting insurance does not mean that you are paranoid, it means you are smart.
Here is an insurance checklist all millennials graduating college should keep in mind.
1. Research different types of insurance products
As a millennial, the first thing you need to do is learn about the different types of insurance products available in the market. There are those insurance products that have been around for a long time for example car, home, renters, life, and health insurance.
Today, rider share services like Uber and Lyft have offered millennials job opportunities but what many don’t know is that your personal car insurance does not cover commercial use and there is an insurance gap. It is important to learn more about comprehensive car insurance, smartphone protection plan, travel insurance and others. What are their pros and cons? What do they cover? Should millennials buy life insurance? This will help you to stay informed.
While researching, it is important to learn the terms and conditions, the premium rates charged for different levels of insurance products, and the best insurance companies.
2. Itemize your expenses
It is wise to take time and learn what you want and what you need. Today, millennials are faced with tough decisions when it comes to spending. Many will opt to order in rather than shop at a grocery store and prepare meals at home. Others will opt to own a car yet they cannot afford to maintain it properly. In order to plan your life, you need to itemize your expenses.
You can divide your expenses in three categories: ongoing, immediate and future. Examples of immediate expenses include mortgage, uncovered medical expenses, funeral costs, car loans, credit card debt, taxes and estate settlement costs.
Examples of ongoing expenses include food, rent, utilities, transportation, health care and clothing. Future expenses include retirement and insurance. If your ongoing and immediate expenses are more than your income, then it’s time to spend wisely. Take a bus or subway as the travel insurance costs are less, cook more instead of eating out and pay off your credit card debt to improve your credit score.
3. Talk with an experienced insurance professional
While your parents and older siblings have interacted with insurance brokers and have covered themselves with 2 or more insurance products, they don’t count. Millennials need to learn how to identify a good insurance company within your area. Walk in and make an appointment to speak with an experienced professional.
It is important to have a list of questions prepared early to allow for a constructive interview. Furthermore, it allows you to learn more about the products they have to offer. Experienced insurance agents will always provide you with tons of useful information even helping you create a customized insurance plan which covers important aspects of your life. This will not only help to ensure you are protected but it will save you money.
4. Find where to buy insurance
Today, there are several options of buying insurance not only health insurance but car, travel, smartphone protection plan, renters, home, and life insurance among others. If you are looking for health insurance providers, you can always start with the government health exchange or state exchange.
Millennials can also consult private companies. Doing so helps you to sample the different plans on offer and select one that fits your lifestyle. What you need to know is that when it comes to insurance, finding the best deals on premium should not be your goal but the best plan that fits you. Look at the options and support on offer too.
5. Read and re-read the fine print
Now that you have learned all about the different types of insurance products, their options and the market places where you can purchase them, it’s time to pick a plan. Once you have selected a plan that fits your lifestyle, you will be given forms to fill.
While millennials are said to be the largest educated generation, when it comes to contracts, many do not take time to read the fine print carefully. Scanning the documents quickly will result in you missing a key detail(s). This one detail can result in you not being compensated or result in you not being covered for something.
So, to avoid such mishaps, millennials should take their time to read and re-read the fine print. If you don’t understand what some phrases mean, consult an expert within or outside the insurance company. Having a better understanding of what you are getting into will save you a lot of money now and in the future.
You have gone through the insurance checklist every millennial graduating college needs to know finally picking up a plan that fits their lifestyle. At this point, you need to know that you have added a new expense in your life – insurance premium. You need to keep up with the payments just like you do with your college loan, credit card payments, rent and other utilities. Not making the payments early will result in you not being covered and you may end up being penalized too.
Just a recap of the insurance checklist for millennials – start by learning more about different insurance products, itemize your expenses, consult an experienced insurance professional, learn where to buy insurance, select the right plan that fits your lifestyle and re-read the fine print before signing on the dotted line. It’s time to let go off the bullet proof attitude because misfortunes can occur at any time. Smart thinking will protect you.