6 Insurance Musts: A Post-Grad Guide to Adulting
So, you’ve spent the last few years living that dorm life; you’ve subsisted on a steady diet of dining hall delights, ramen, pizza rolls, and whatever other super healthy fare the freezer aisle has to offer a hangry college student. You’ve had your fair share of hard-knock lessons, and you’ve still made it through to the other side of graduation, and now you get to start the learning curve all over again and enter the mystical, daunting world of adulting. You’ve heard tales of the many woes of adulting (most vividly illustrated in millennial memes), but they barely scratch the surface in preparing you for the many things you will now have to consider as a full-fledged adult.
Luckily, our insurance experts have all been there, done that, even got the t-shirt! And our team of insurance experts are here to offer up some guidance as far as your new insurance responsibilities are concerned. So, read on for some hard and fast survival tips on adulting from some insurance pros who have virtually seen it all.
Post-Grad Insurance Musts
So You Graduated… What Are Your Insurance Musts?
This is one of the most exciting times in any young adult’s life. You’ve paid your dues and earned your degree and now you are ready to go out into this great, big world and make your mark on it. We know you have a lot on your plate, and insurance responsibilities are likely in your peripheral. However, there are quite a few nuggets of wisdom concerning your insurance needs and expectations that we wish we had been given at your age! So, with that in mind, we are here to inform you about some insurance musts in this new exciting chapter.
1. Don't Skip Liability Insurance as a Renter
Now that you will likely become a renter, there are important features of a renters policy that you should know about. As a post-grad, you’re now on the hook for your living expenses. This may tempt you to cut costs when it comes to your renters insurance.
However, we know from personal experience and experience as insurance agents that it’s not always a good idea to tempt fate and hedge your bets against life’s “what-ifs”. (Life usually responds to that mentality by saying: “Challenge accepted.“) So, here is what one of our insurance experts had to say about keeping liability coverage on your renters policy:
“Liability is important regardless of whether you rent or own a home. It’s there to protect you and your family in the event that someone gets hurt on your property or is trying to sue you for damages. You are held legally liable for any cost resulting from injury or damages that occur on your property. That’s why it is important to have enough liability on your renters or homeowners policy to protect your assets from being liquidated.
We would rather have the insurance company write the check than you lose your hard earned life’s work! If you don’t have a significant build-up of savings, stocks, bonds, or a second property after college, you are not alone – but you’re not off the hook yet! If someone happens to get hurt at your new apartment and you don’t have renter’s liability, you’re still held liable for their injury. We always recommend speaking with your agent and making a plan on how much liability you need on your policy before reducing any coverage. “
2. Don't Cut Corners on Your Car Insurance
Many post-grads reward themselves for graduating or landing that first job with a new set of wheels. But why stop splurging there? If you truly want to protect that new car, it’s ill-advised to skimp on auto insurance musts by opting out of vital coverage. While physical damage covers the cost to repair damage to your own car, it’s provided on what is known as an actual cash value (ACV) basis.
ACV payment may be less than you owe if the car is totaled in an accident, due to depreciation in the loss settlement being applied. It may seem like a costly investment upfront, but at the very least, purchasing gap coverage can protect you against potentially large out-of-pocket expenses following an accident. A good rule of thumb is to remember that liability only pays for the other person, while physical damage is required to cover damages to your car!
3. Invest in Life Insurance
You may, like many who are both new to the working world and those who are veterans in the workforce, think your employee provided life insurance is sufficient. However, there are exceptions, and your employer provided coverage may not include some important insurance musts. Our insurance experts have some insight to share:
“As much as we hope the new job you just landed is going to be the same place you work for the next 30 years, the reality is people change jobs every couple of years, and with that, your employee benefits may change. It’s important to have your own life insurance policy established outside of work to protect you at all times! In addition, many employee provided life insurance policies are not enough to cover the cost of a funeral, any outstanding debts, or help replace an income your family may depend on to maintain the standard of living to which they are accustomed.
If you just graduated and do not have anyone depending on you yet, now is the time to talk to your agent about life insurance. Young people are usually in good health, which means better rates! When you are young, there is also time to start a Whole Life or Universal Life policy that can accrue interest overtime. Plan ahead by setting your future up for success and protecting your family.”
4. Good Health Insurance is Priceless
You’ll likely have the opportunity to now enroll in group health coverage at your new job as a post-graduate adult. In most cases, you’ll fare better under a group policy than trying to fly solo with your own coverage. According to our employee benefits experts, If you’re offered group health insurance through your employer, there are some important factors to consider:
“First and foremost, your employer will contribute towards a large portion of your monthly premium for coverage. Any additional cost for yourself or dependents is the employee’s responsibility but can be purchased using pre-tax dollars, which is truly beneficial. Having access to an employer sponsored group health plan typically allows for access to better networks (Doctors, Hospitals, Specialists) and better plan designs (Lower Deductibles, Lower Out-of-Pocket Maximums, and/or HSA’s “Health Savings Accounts”).”
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Our National Providers
At Lifetime Insurance Services, we firmly believe in that old adage, “variety is the spice of life”.
With access to multiple providers, we can offer a pool of coverage options as diverse as your needs.
5. It's Never too Early to Invest in a Retirement Plan
After toiling away at earning your diploma and landing that first job, investing your hard-earned money in a retirement plan probably doesn’t seem like one of the insurance musts and is likely furthest from your mind. However, it’s never too early to start thinking about your retirement security. In fact, the earlier you start planning, the more you will get to reap the fullness of your rewards during your golden years. While there’s never an ideal time to start investing in your retirement, the earlier you can start, the greater the reward down the road.
6. Cheaper Plans Don't Always Cover Your Insurance Musts
Whether it’s your auto and renters or home insurance or your life or health insurance, opting for the cheapest possible coverage doesn’t always pay off when the unexpected rears its ugly head. If you’re worried about overpaying for coverage you may not need, it’s worth the conversation with a knowledgeable insurance agent to discuss your options before settling for the bare-minimum plan.
Cover All Your Insurance Musts
Find an Agent and Policies Who Grow with You
Adulting can be a double-edged sword. While you’re free to pursue your dreams and passions as an un-tethered, fully-functioning adult, you will also face inevitable challenges and curveballs that life loves to throw our way. That’s why it’s so important to make sure you are adequately covered in the areas that matter most to you. From your car and home/rental property to your health and future retirement savings, the right insurance policies will help shield you from the financial impact of unforeseen bumps in the road.
Furthermore, working with an insurance agent who takes the time to truly understand you and your lifestyle can make all the difference in building the right insurance policies for every chapter of your life. If you’re ready to grab this next season by the horns with the full confidence that you’re covered by the best policies, give our team a call today at (972) 771-2622 or visit our website to set up an appointment with one of our awesome insurance experts!