5 insurance facts for recent grads

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When an individual is starting their career, it’s important to realize that life will throw many unexpected events on their way. This is something that happens to everyone. Having the right insurance can make getting past a difficult situation a lot easier. Financial experts agree there are a variety of insurance options available. There are also some types of insurance that are considered essential for dealing with unexpected things that can occur at any age.

1.    Individual Situation

It can be a challenge for a person starting a career to know what insurance they should purchase. Purchasing the right kinds of insurance should be determined by a person’s individual situation. A number of factors will determine this. It will involve employment benefits, age, lifestyle, and more. There are four different types of insurance experts recommend everyone have. They are health insurance, life insurance, long-term, and short-term disability insurance as well as homeowners/renters insurance.

2.    Health Insurance

In many cases, people starting a career could be just one serious illness away from disaster. According to a study done by Harvard University, 62 percent of all bankruptcies in the United States were a result of health related issues. Over 75 percent had some form of medical insurance. If a person has health insurance through their employer, they may want to consider the best plan offered. The key to getting the best possible health insurance is for a person to do research and know all of their options. Sometimes the least expensive health insurance is not always the best deal. Even with rising high co-payments and deductibles, health insurance is still something people must have. A minimal health insurance policy is still better than not having any type coverage.

3.    Life Insurance

According to an article in US News, people don’t often think of purchasing life insurance until after they’re married and have children. The reality is a younger person will be able to purchase a life insurance policy at a very low rate. This policy will grow in value over time. These types of life insurance policies can be adjusted as a person gets married and has children. This is the time when a person’s death could cause a financial burden to those who depend on them. If a person is unmarried and does not have children, it is also important they purchase life insurance. There is a good chance they will leave behind debts such as student loans, credit card bills, auto loans that must be paid. Without life insurance, these debts will become the responsibility of family members.

4.    Disability Insurance

This is the type of insurance people starting a career believe they may not need. Nobody who becomes injured or disabled on the job believed it would happen to them. According to statistics from the Social Security Administration (SSA) approximately 30 percent of individuals entering the workforce eventually become disabled. These are disabilities that make it impossible for a person to work until their retirement age. Workers with the best health insurance, generous savings, and good life insurance are not completely prepared to become disabled. Health insurance will cover medical bills and hospitalization. It’s common for employers to provide their employees with both short-term and long-term disability insurance coverage. If a person is an independent contractor or owns their own business, they can get this type of coverage from a private insurer.

5.    Homeowners/Renters Insurance

When a person is starting their career, they may need to rent a place to live. There are some leases that require a person to have renters insurance. This type of insurance will cover a person coming into a rental unit and getting injured. It can also cover a person’s things that might be stolen. Should a renter make a mistake and cause damage to the rental unit, this type of insurance may cover the damage. Should a person own a home and have a mortgage, the lender will probably require them to purchase and maintain homeowners insurance. In many cases, failure to pay a premium may be reported to the lender. Homeowners insurance is designed to cover the destruction of a structure, its contents. It can also protect a homeowner if someone is injured on their property and much more.

Michael Rogers, Operations Director of US Insurance Agents

Do you need help making other major life decisions as a recent grad? Keep reading our blog for more tips and follow us on LinkedIn, Facebook, Twitter, and YouTube.

 Michael Rogers is the Operations Director of USInsuranceAgents.com. With over five years of experience and knowledge in the insurance industry, Michael contributes his level of expertise as a leader and an agent to educate and secure coverage for thousands of clients.