Finkle – If you’re a millennial, you know what that means. You’ve reached the age where you can take out student loans, buy or rent a house, have kids, and finally buy insurance. These major life events over the millennia make it even more important to have a financial safety net. And that’s exactly what insurance is: a financial safety net. That’s why it’s alarming that a survey by Princeton Survey Research Associates International named millennials as the most dangerous generation. There are many reasons why people of all generations prefer insurance. It is always considered a great investment, but that does not mean it is an expensive investment. In fact, insurance is probably lower than you think. For example, according to the National Association of Insurance Commissioners (NAIC), millennials have increased the cost of renters insurance by more than five times the actual cost per year.
Complex terms can also make searching for a policy confusing and the subject matter difficult to digest. No one wants to think about being in a car accident, experiencing a burglary, losing everything in an apartment fire, or some other bad, unexpected event. But these things can happen, so you have to be prepared. And don’t get distracted by initial confusion or preconceived ideas. After all, you are a millennial! Your generation is constantly facing new challenges and expanding the way the world works, often in a positive way.
Insurance provides important financial protection for your future, so now is the time to start “satisfying” and take the first step. Here are five tips for getting insurance:
1. Shop Smart.
If you are looking for insurance, your not. Priority 1 is to find adequate coverage. Price is important, but first you want to know what coverage you need. You can then factor this coverage into your budget and see which carrier can provide you with the most comprehensive policy for your situation. You may be required to choose the lowest priced insurance, but if you don’t have enough coverage (or the right type of coverage), you won’t see much financial benefit when it comes time to apply.
2. Find discounts.
Once you’ve assessed your coverage needs, include your budget and find ways to save. Ask your insurance agent if there are any discounts on your coverage. Carriers often offer discounts for things like paying your insurance in full, avoiding a car accident or, if you’re in school, getting good grades. You can also save money by “bundling” multiple policies, such as buying a home and auto policy from the same carrier.
3. Fill in the blanks.
A general policy will cover the basics, but you can add additional coverage to meet your unique needs. For example, you may have things like electronics or beautiful jewelry that are difficult to replace financially, despite the help of your average renters or homeowners policy. You can add additional coverage for these items.
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4. Buy life insurance – you’re not too young.
Life insurance is important no matter how young or old. And for millennials, buying outright can be a smart move because it’s cheaper to get life insurance when you’re young and healthy. This type of insurance can help your family cover the unexpected costs of your loss, including student loan debt as a loan, in addition to end-of-life expenses. And if you have children, life insurance can also cover the costs of education or childcare. In addition, any millennial coverage should consider long-term disability, which can help you stay financially motivated if an accident happens and you become disabled and unable to work.
5. Talk to an independent agent.
An independent insurance agent is an important resource when purchasing insurance – especially if it’s your first time. An independent agent works with many different carriers, unlike captive agents who can only sell insurance from the carrier they work for. Working with an independent agent can help you get the best coverage at the best price. You can also benefit from independent agents’ insurance knowledge; they know how to tell you your options and explain what is included in each policy. An independent agent will make sure all your belongings are covered, help you find discounts or other ways to save, and be a valuable resource when your life and needs change. Insurance will also change.