Be careful how much you spend on insurance by purchasing the coverage that matters. By protecting what you have now and what you will have in the future, you can ease your financial burden. Even though you may have just graduated and are saving money while you look for a perfect job, there are certain things you can do to help save you money now or in the future. Here are some valuable tips to get graduates started on the right path.
- bundle your insurance
- recognize the benefits of a good health insurance policy
- invest in liability insurance
- take your time and find a good auto insurance policy
- look to your future
- immediately discount the benefits of a life insurance policy
- choose the first insurance policy you come across
- naysay renter’s insurance
- forget the many other insurance options out there
- ignore your need for help
Bundling your insurance policies is a great way to save money. For example, many insurance companies and even agents will give you a good discount if you bundle auto and homeowner’s/renter’s insurance. This is a great deal for those necessary policies you can get from a single company because you’ll need to be careful with your expenses.
Health insurance is a universal need that hopefully will be covered by an employer if you work in a full-time position. This is an extremely important type of insurance because medical treatment can be horrendously expensive. Many graduates are often times still covered under their parents’ health plans until the age of 26 so keep that in mind as great way to save a few extra bucks.
Attach liability coverage to both auto and renter’s insurance for a well-rounded plan. This coverage is essential due to the exorbitant cost of medical bills and lawsuits. College grads can be very vulnerable to lawsuits due to their estimated earning potential, especially those going through law school or medical school.
Finding a good auto policy is important since this type of insurance is mandatory in most states. Do make sure there’s at least $100,000 in liability coverage for unforeseen circumstances. Take good care when designing your policy coverage and pay close attention to the deductible and other limits. An insurance agent will be able to guide you towards the most cost-effective policy.
Retirement planning is not something most graduates start thinking of the moment they receive a diploma but it is never too early to start planning. The earlier you open an individual retirement account or participate in an employer's retirement plan, the better.
While life insurance is not a necessity, definitely discuss it with an experienced insurance agent because there are some positive benefits to having a policy. A policy would be beneficial if there is someone depending on the potential policyholder like future children or see what an employer will provide as far as life insurance policies go. In some cases, it’s cheaper to purchase an individual policy while you’re young and healthy.
The Internet is a great resource when comparison-shopping for many of these types of insurance policies. Make sure to check the complaint ratios for any companies at the top of your list. A clean claim paying record is definitely an important aspect of a good insurance company.
You will always need some sort of coverage for your living space due to important concerns such as fire, water damage or burglary. As a start, make a schedule of any belongings, which is all it takes for most people to realize how important renter’s or homeowner’s insurance is. These policies are fairly inexpensive for what they cover so don’t relegate renter’s insurance to the backburner.
Disability insurance is another example of a necessary insurance policy. If your employer doesn’t offer one then consider purchasing an individual policy. The odds of a disabling injury are too high to leave disability insurance off your list. Long-term care insurance is an example of a policy you might not need right away. You’ll still want to keep it in the back of your mind, however, since it is cheaper to purchase when you’re young and healthy.
Unless you just graduated in an insurance-related field, chances are you could use a little expert help to decide on what policies to purchase. Sure, it may cost a little time and money to meet with someone to discuss insurance but it is definitely worth it. You’ll feel better knowing you have strong policies for those occasions when you’ll need to draw on the benefits.
These are not the only insurance policies out there. Have someone guide you through which policies are the most important for you to have upon graduation and save the others for when you have the stability to purchase them. No one likes looking over insurance policies but it can save you a lot of headache down the road if you take charge now.