Millennial Insurance Tips from a Millennial
If millennials are actually guilty of one of the things they're often accused of, it's a lack of contingency planning. Specifically, insurance. Sure, if they have a car, it's insured (mainly because it legally has to be), but most think insurance isn't something to worry about until there is a need to buy a house, get married, or have kids.
With many millennials delaying these life events or approaching them in a non-traditional way, insurance isn't always a priority. But that really shouldn't be the case. We chatted with Certified Financial Planner (and fellow Millennial) Lindsay Sawyer, and she shared her top four tips for young people who may be clueless about different types of insurance, and how it can benefit your life.
1. Insurance protects the things you care about. Figure out what's most important and what kind of insurance will cover it.
• Tenant/rental insurance: All it takes is one careless neighbor leaving a tap on to flood your rental space. Homeowners/Rental insurance is a much cheaper option than refurnishing your entire place.
• Health Insurance (Health & dental, Disability, Long-term care, Critical illness): Paying for healthcare out of pocket is pretty expensive. Being insured significantly reduces your healthcare costs.
• Travel: One minute you're hiking Machu Picchu in Peru, the next your leg is broken. Travel insurance helps you to cover the cost of getting proper care while traveling abroad.
• Life Insurance: If you have a car loan, and/or a mortgage, having life insurance means peace of mind knowing that if something happens, your family isn't left with debt.
2. It doesn't cost as much as you think. Both Generation X and Y think that insurance is more expensive than it really is. Get quotes for different levels of coverage from a few companies, and shop around to find the price that's right for you.
3. One size doesn't fit all. There are various types of insurance policies with different levels of coverage. If you have coverage through work, you might think it's all the insurance you need, but as your lifestyle changes it might not be enough.
4. The best time to buy life insurance is when you're young. Although it depends on the amount of coverage you want, usually the younger and healthier you are when you buy insurance, the lower your premiums will be. The reality is, your health can change without warning and it's less stressful and more affordable to have coverage before you actually need it.
Properly designed coverage grows with you in the various phases of your life. Ask about your financial options from a Manulife Advisor to figure out what kind of coverage makes sense for your life. Click here.