Have you reached the age where you may be going through major life events – taking out a student loan, buying or renting a place to live, having kids, etc? These major life events make it extremely important to have a financial security net. And that’s exactly what insurance is: a financial security net.
Does it all sound super daunting? The complicated terms can be puzzling and no one wants to think about being in an accident or any other type of unexpected event. However, it’s always a good idea to be covered for the unexpected. Whilst insurance is often seen as a big investment, that doesn’t necessarily mean that it’s an expensive one. In fact, insurance probably costs less than you think.
Don’t let any initial confusion or preconceived notions drive you away. Insurance provides financial protection for your future, so if now’s the time to take that first step, read the following five tips for finding insurance right for you;
1. Shop smart
When looking for insurance, your No. 1 priority should be to find adequate coverage. Price is important, but you’ll want to determine what kind of coverage you need first. Then you can fit that coverage into your budget and determine which carrier can provide you with the most comprehensive policy for your situation. You may be tempted to choose insurance with the lowest price tag, but if you don’t have enough coverage (or the right kind of coverage), you will see less financial benefit when it comes time to file a claim.
2. Look for discounts
Once you evaluate your coverage needs, factor in your budget and find ways to save. Ask the company or agent you’r dealing with if there are any discounts on your coverage. Often, insurance companies offer discounts for things like paying your policy in full, staying auto accident-free or, if you’re in school, getting good grades. You also can save money by “bundling” multiple policies, such as purchasing a home and auto policy from the same insurer.
3. Fill in the gaps
An average policy will cover the basics, but you may need to add extra coverage to meet your unique needs. For instance, you may have items like electronics or a nice piece of jewellery that would be financially difficult to replace, even with the assistance of your average renters or homeowners policy. You may want to add additional coverage for these items.
4. Purchase life insurance – you aren’t too young
Life insurance is essential, no matter how young or old you are. Buying now is always a smart move because it’s cheaper to buy a life insurance policy when you’re younger and healthier. No time like the now. This kind of insurance can help your family cover unexpected costs in your absence, including student loan debt or a mortgage, in addition to end-of-life costs. And if you have kids, a life insurance policy can also support their education or childcare expenses. Additionally, you should also consider long-term disability coverage, which helps you stay afloat financially if an accident happens and you become disabled and unable to work.
5. Research, compare, talk to an agent
An independent insurance agent is an essential resource when purchasing insurance – especially if this is your first time. An independent agent works with multiple different carriers, which is different from captive agents who can only sell insurance from the carrier they work for. Working with an independent agent can help make sure that you are getting the best coverage, for the best price. You’ll also benefit from independent agents’ insurance knowledge; they know how to talk you through your options and actually explain what each policy includes. An independent agent will make sure all of your assets are covered, help you find discounts or other ways to save, and be a valuable resource as your life changes and your insurance needs change, too.
Think it’s time to check out life insurance options? You can get a free quote here.
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Originally published by Grange Insurance, 5 best insurance tips for millennials.