Young adults who have just graduated from college are in a period of transition. It takes time to figure everything out from where to find employment to what you need to properly stock a kitchen. Most new graduates don’t think much about insurance. However, there are several different types of insurance that young adults, who are just starting out, will need.
It can be difficult to make the transition between being a college student and starting out in “the real world” as an independent adult. There are many decisions that need to be made about all aspects of life. It is easy to get caught up in trying to figure out where to find a job, where to live, and how to pay off your student loans. Those are important things.
However, it is also important that young adults make sure that they get the insurance coverage that they need. Insurance provides you a certain amount of financial protection when things go wrong. Without it, a person ends up paying for repairs and replacement costs out of their own pocket. Here are a few types of insurance policies that everyone needs when he or she is just starting out.
Young adults who are not going to be returning to live with their parents are probably going to need renters insurance. It covers the cost of repairing or replacing your property in case of fire, theft, or severe weather. A landlord will, hopefully, have insurance on the building. The landlord’s insurance will not cover the property of renters, though.
Auto insurance is important to have. Most states require drivers to carry auto insurance coverage. It provides drivers with a certain amount of financial protection in case an accident occurs. There is a common misconception that all a person needs is the least expensive type of auto insurance policy. In reality, it is often a good idea to buy collision or comprehensive coverage in addition to a basic liability policy.
Everyone needs a good health insurance policy. Young adults who have graduated from college probably are not going to be able to covered by their university’s health insurance anymore. People who are between 18 and 26 years old can be covered under their parent’s health insurance policy. New graduates who were fortunate enough to immediately find a job that includes employer sponsored health insurance can get coverage there.
For everyone else, it would be a good idea to get an individual health insurance policy. Many young adults are healthy, and tend to believe that they won’t need health insurance until they get older. In reality, one visit to the emergency room from an accident or one hospital visit for a serious illness can destroy a person’s finances for years to come.
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