5 Essential Insurance Tips Millennials Need to Know
Skipping Starbucks and opting for the homemade latte, “soft saving”, using Tik Tok as a side hustle: personal finance looks way different now than it did for mom and dad. Millennials and Gen Z are skipping many of the “Boomer” financial fads and developing their own style of money-management. But there's one aspect of financial wellbeing that often gets overlooked: insurance. While the older generation may chalk this up to neglect, the younger generation just may not be fully aware of the nuances of insurance coverage and how it can benefit them. In this blog post, we'll explore five essential insurance tips that every Millennial and Gen Z should know.
Renter's Insurance Is a Must-Have
Renter's insurance is often underestimated but holds significant importance for tenants who rent their homes. Renter's insurance protects your personal belongings from theft, fire, or other covered perils. It also provides liability coverage in case someone is injured while visiting your home, and can even cover additional living expenses if your rental becomes uninhabitable due to a covered loss. The peace of mind that renter's insurance provides is invaluable, and the cost is often surprisingly affordable! With more people choosing to rent instead of buy, this insurance option is more important than ever.
Explore Health Insurance Options Beyond Employer Plans
While employer-sponsored health insurance plans are common, be aware that there are other options for obtaining health coverage. Enrolling in a plan through the Health Insurance Marketplace, qualifying for Medicaid, or staying on a parent's health insurance plan until age 26 are all viable options for a young person in need of insurance. Understanding these alternatives and comparing coverage options can help millennials find the right health insurance plan to meet their needs and budget. CFIA Partners offers expertise for anyone in need of advice when it comes to choosing the right plan.
Consider Life Insurance Early
Life insurance may not be a topic at the forefront of millennials' minds, but it's an essential consideration, especially for those with dependents or financial obligations. Purchasing life insurance at a young age can lock in lower premiums while providing financial protection for loved ones in the event of an unexpected death. Life insurance can provide invaluable peace of mind and security for the future by covering funeral expenses, replacing lost income, or paying off debts.
Shop Around for Auto Insurance
Auto insurance rates can vary significantly depending on various factors, including age, driving record, location, and the type of vehicle. Millennials and Gen Z should take the time to see an insurance brokerage like CFIA Partners, who can shop around and compare auto insurance quotes from multiple providers to find the best coverage at the most competitive rates. Another tip: Maintain a clean driving record and bundle insurance policies with the same provider, to access discounts and help you save on premiums.
Understand Deductibles and Coverage Limits
When selecting insurance policies, whether it's for auto, home, or health insurance, it's crucial to understand deductibles and coverage limits. A deductible is the amount you're responsible for paying out of pocket before insurance coverage kicks in, while coverage limits determine the maximum amount your insurance company will pay for a covered loss. Choosing deductibles and coverage limits that align with your budget and risk tolerance is essential to ensure you have adequate financial protection without overpaying for unnecessary coverage.
Having insurance is an important aspect of financial planning. By understanding the importance of renter's insurance, exploring health insurance options beyond employer plans, considering life insurance early, shopping around for auto insurance, and understanding deductibles and coverage limits, the next generation can make informed decisions to protect themselves and their assets effectively. Taking proactive steps to secure insurance coverage now can provide peace of mind and financial security for the future.
