If you’re on your own for the first time, insurance may be among the last things on your list, falling somewhere after IRA contributions and just above pre-purchasing burial plot. You figure you’ll get insurance eventually, once you own a home, have a family, and are really into the adult world. For now, though, that’s an expense you can’t afford. After all, insurance premiums cost money, and you’ve got all you can do focusing on the here and now.
If this describes your mindset, you may be making a BIG mistake. For one thing, in this credit conscious society, you don’t want anything to harm your rating, and nothing will do that faster than bills piling up, late or unpaid. Protect yourself. Life is considerably more expensive for those who find themselves without insurance when they need it. Most insurance isn’t that pricey when you’re young. insurance becomes more expensive as your assets, and age, increase. By purchasing insurance now, while life is relatively uncomplicated, you may ensure future insurability and keep your costs down. Here are some of the most important types of insurances that you should opt for. Moreover, you can also go for specialist insurance online that is equally reliable. You can read all the terms and conditions that are there with your insurance policy online and can buy that easily on your own.
Let’s look at what you need.
Renter Insurance is the most neglected area of insurance coverage, which is a shame, because it’s usually very inexpensive, and it replaces your personal property just as homeowners insurance would replace the contents of your house if you owned one. Your landlord’s insurance only protects his losses, i.e. the building. He would not be responsible for replacing your possessions. Twenty dollars a month, or less, will protect your personal property against theft, fire, or another catastrophe.
You need life insurance. No, I’m not kidding, and here’s why: because you are not likely to die. And since you’re not likely to die, the premiums are dirt cheap. If you buy the right policy, you’ll keep those low payments as long as you have the policy, and you’ll also be able to buy more insurance when you someday have that mortgage and family. If you wait until your older, and less healthy, life insurance will be more expensive, and you may not even be able to get it at all. So, what you’re really buying now is “future insurability,” and you’re doing it for pennies a day.
Auto insurance, at least liability coverage, is a must. Be prepared for a little sticker shock, here. This one IS the pricey one, though you may not realize it. You’ve probably been covered since under your parents’ insurance, but that’s coming to an end. Unfortunately, young adults tend to get charged higher premiums for car insurance, so you may need to do some budgeting to account for this expense. Still, the cost varies widely among insurers, so shop around, and determine whether you really need to have collision coverage. If you own a really old car, the premiums you pay may not be worth it.
Even if you’re young and healthy, you need some sort of health insurance. If you’re lucky, you have a job and are offered group health insurance as one of the benefits. Group coverage is almost always more comprehensive than individual health policy, and usually, the premiums are less. They’ll also take you, regardless of pre-existing conditions you may have, and the premium comes out of your check, which is convenient.
Under the Patient Protection and Affordable Health Care Act, you can stay on your parents’ plan until you’re 26, as long as you live with the plans’ service area. This is true even if you’re offered coverage at work, if you live on your own, or if you get married. If you’re not covered at work, this should be your next option.
If you can’t be covered under your parents’ plan or your group policy at work, as a last resort, you’ll need to purchase health insurance on your own. Don’t risk going without. It’s true that a hospital will treat you in an emergency, but they are increasingly inclined to request payment upfront for any other treatment. They can, and do, force payment through credit collectors and lawsuits, which can stay with you for a long time to come. You can save money by getting a low-premium, high deductible plan that will protect you if something big goes wrong with your health. You would still need to handle routine sick visits yourself – say, if you get strep throat or a sprained ankle – but, per the Affordable Care Act, most major medical plans provide preventive care for free. Again, shopping around is the key here to getting the most bang for your buck.
With a little foresight and planning, you can protect yourself and property now, limit your liability, and ensure your future financial security.