Guest contribution by Derek Goodman
It may not be the most exciting thing to think about, but insurance is an essential part of living a secure life, both for yourself and your loved ones.
When you’re young, it may not seem like that big of a deal. After all, young adults are typically at lower risk of experiencing health problems, for instance.
However, illnesses, accidents, and catastrophic events happen all the time, and you can end up in overwhelming financial circumstances if you don’t have certain insurance policies in place. Here’s a list of four of the most important types of insurances young adults should consider adding to their life.
Insurances for Young Adults
Even if you’re young and healthy, having a health insurance plan in place is critical. You never know if there will be some kind of illness or accident that comes your way, and an insurance policy will provide you with financial security when it comes to expensive medical bills.
Plus, having regular checkups with your doctor helps you to stay in front of any potential health issues, and those visits are much more practical when you have insurance.
Do your research to determine the best type of plan for you (e.g., think premium, deductible, etc.). And try to stay in-network when you go to the hospital or doctor.
Life insurance can replace lost income for your loved ones if you unexpectedly pass away, and it can be used to pay off certain outstanding debts, such as student loans, credit card bills, and car loans. It may seem like it’s way too early for you to consider life insurance, but here’s the thing: The younger you are, the cheaper it is to purchase a policy. So, even if you’re not married or you don’t have children right now, it’s wise to prepare for the day that you might.
You might also consider purchasing a final expense policy. While a final expense policy typically has a smaller benefit amount, it pays out immediately. This makes it especially useful for covering the costs of a funeral, memorial service, and/or burial. Plus, it can be used for debts similar to a life insurance policy.
In most states, having auto insurance is the law. If you get pulled over without insurance, or if your state monitors vehicles and realizes that yours isn’t registered, you could be facing fines of hundreds or thousands of dollars. In some cases, your license could be revoked.
Even without the ramifications of the law, however, it’s essential to get auto insurance because it helps protect you from financial ruin. Liability, personal injury protection (PLP), collision, and comprehensive are all types of coverage to consider when looking for the right policy.
This is something that most young adults don’t give much thought to, but it’s important nonetheless. If you purchase a home, you want to protect your investment, and the primary way to do so is through a homeowners insurance policy. Having a home insurance policy isn’t required by law; however, if you plan to buy a house one day, your lender will require a home insurance policy for the life of the loan. In addition to providing coverage for the actual structure, homeowners insurance will also cover personal property loss.
You’ve heard it said to hope for the best and plan for the worst, and that definitely applies to insurance, even for young adults. Look into health, life, auto, and disability insurance to determine what kinds of policies will work best for your current and future lifestyle.
Having these types of insurance in place will provide peace of mind and help protect you and your loved ones for years to come.