Modern life is complicated for young adults. So much precautionary and administrative work is done by our guardians behind the scenes to keep us safe and provided for, it’s easy to miss how exhaustive adult obligations are. Educating yourself about what types of coverage are available to you will make these early steps in your life far simpler. Read on for some important tips and resources.
Health
Arguably the most important coverage for a young person to look into is health coverage. Surveys conducted over the last decade show that more and more young people are getting it as we become increasingly health-conscious. Health insurance protects you from massive surprise charges from emergency hospital visits, while also covering portions of the cost of health maintenance and medications. Make sure to research your options; employer-provided policies are typically more affordable, and while higher deductibles may involve lower premiums, they also take more out-of-pocket expenses before they go into effect.
Auto
Everyone has health, but not everyone has a car. Auto insurance protects you from unexpected expenses related to damage to your vehicle and is often required to keep a car legally on the road. Similar to health, there’s a substantial amount of cost-benefit analysis involved when selecting the correct auto insurance.
Comprehensive policies are the most expensive but will cover nearly any unplanned damage to your vehicle besides routine maintenance. This model usually protects you regardless of fault in an accident. Liability tends to be the less expensive option, but typically only covers damage your vehicle causes to the property of others. If you are at fault in an accident and only have liability insurance, chances are any repairs to your vehicle will be coming from your own pocket.
Disability
Disability insurance is also worth considering. Even though nobody intends to become incapable of working, it’s good to have peace of mind knowing that an accident can’t immediately eliminate your only source of income. There are short and long-term forms of disability, and it may be cost-effective to have both.
Short-term disability is exactly as it sounds; it covers a portion of your wages in the event a disability takes you out of work for a brief period. Long-term disability provides income when you’ll be out of work for an extended period, be it for recovery from major surgery or treatment of a chronic illness. Different plans and regions have different distinctions between the two types of disability insurance, so be sure to research your options.
Life
Life insurance is a far more difficult and personal choice than those covered above. It pays out a monetary benefit to the person or people of your choosing in the event of your death. While this is a grim subject to consider, whether or not you need it depends less on whether you expect to die soon and more on whether your death (expected or otherwise) will impact the financial health of people in your life. If you have a spouse, child, or any other who relies on your income to survive, you should have coverage.
Business
Lastly, if you’re a young entrepreneur with a business based out of your home, there’s even home-based business insurance. Certain aspects of a home business may not be covered by homeowners’ or renters’ policies. Home business coverage can help cover losses of company electronics, data, and equipment.
Just entering the adult world, you’ll encounter many unfamiliar challenges. Educating yourself about available insurances will keep you informed and prepared as you build your life.
Image via Pexels