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May-11-2016 22:57TweetFollow @OregonNews
How to Make Good Decisions About InsuranceSalem-News.com Business
No matter what your age, it is best to be prepared for the unexpected.
(SALEM, Ore.) - Insurance. That’s for somebody else, right? Somebody older, wealthier, and with more dependents needs insurance, but not you. Or do you? Millennials are famously lax when it comes to insuring their health, homes, cars, and lives.
One theory goes along with the common “entitlement” prejudice and says that young adults count on boomeranging back home when assets are lost and times get tough.
However, if making your own way is important to you, you should educate yourself about the different types of insurance available and which ones can help you meet your goals.
Now that health insurance is required in the United States and children up to age 26 can stay on their parents’ plans, many young adults have access to healthcare that they may not have had in the past.
If you haven’t purchased health insurance yet, set aside half a day to research your options and choose a plan. This will prevent you from paying the penalties associated with not being insured and can lower your bills if you have an emergency. Choose a high-deductible plan if you only want to use it for emergencies.
Life insurance seems irrelevant to many young people, especially when they don’t have children. When deciding whether or not life insurance is for you, think carefully about your obligations and who would be left behind with the relevant bills if you died.
If you have children, the choice is obvious. However, if you are childless but share any major expenses, such as a mortgage or other major debts, with a significant other, you should at least get enough coverage to cover those obligations.
Car insurance is required if you own a car in the United States. However, more and more millennials are going car-free for various reasons, including monetary savings and environmental concerns.
If you do own a vehicle and are required to carry insurance, an agent can help you choose the best plan.
Liability coverage is something many drivers skimp on to lower their premiums, but think twice before you take this route just to lower a bill.
Meeting your state’s minimum requirements for automobile insurance may not be enough, because if you are at fault in an accident, you will be responsible for paying charges over and above the coverage you carry.
Rental and Home
Homeowner’s insurance is, just like it sounds, for homeowners. If you don’t own your home, you don’t need it. If you rent, your landlord should be insuring the home, but what you may not realize is that your landlord’s policy covers his or her interests, not yours.
You need renter’s insurance to protect your possessions against loss from things like fire, water damage and theft.
If you doubt the value of your possessions, imagine trying to replace every article of clothing, every shoe, every towel, every pot and pan and everything else in your home all at once. That is going to cost thousands of dollars, even if you aren’t replacing luxury items or expensive electronics.
The thing about renter’s insurance is that it doesn’t cost very much. If you think of it as part of your monthly housing expense, you won’t even notice the charges.
Assess Your NeedsIf up to this point you thought you didn’t need all the insurance coverage that older people carry, you might have been right. However, it is likely that you do need some types of coverage.
Reassess your needs and your tolerance for risk, and get yourself the right amount of protection.
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