Attention all Millennials: How well are you “adulting” when it comes to insurance? Perhaps you’ve only recently left your parents’ insurance if you’re on the young end of Gen Y, or maybe you’ve had upping your coverage on your to-do list for a while but aren’t sure how to go about it. Whatever your specific situation, insurance is a must. Read on for some helpful insurance tips all millennials should consider so you can “adult” even better!
Who Are Millennials?
Gen Y, or Millennials, are adults by age: born between 1981 and 1996, making them between 25 and 40 years old. Adulting, however, may be something many millennials are still attempting to master. In fact, millennials were recently named the most underinsured generation by the Princeton Survey Research Associates International. That’s a notable statistic when you take into account how plentiful millennials are. According to Statista, there are a whopping 72 million millennials in the United States right now, passing the Baby Boomers as the largest group in our population. Millennials also spent the most money in 2020 — $1.4 trillion! Clearly, millennials are a core group. So how can they make sure their financial safety net is where it should be?
How Millennials Can Master Their Insurance Needs
Insurance exists to protect you in case of an event–car accidents, break-ins, apartment fires and more can happen, and if they do, you want to know you’re covered. Here are the top 5 things millennials can do today to up their insurance game.
1. Do Your Research
It’s important to work your insurance coverage into your monthly budget, so start there. What can you afford? A good rule of thumb is to budget 10-15% for insurance (health, auto, and homeowners or renters). Then, you need to select the right coverage, balancing the amount of coverage with the cost. Your overall goal? To know you’re protected and see a financial benefit if and when it comes time to file a claim.
2. Ask For Discounts
It never hurts to ask. Your insurance agent can help you find any discounts on your coverage, including for things like staying auto accident-free, getting good grades in school, or paying your policy in full. You may also be able to save money by “bundling” more than one policy, like purchasing home and auto insurance from the same carrier. See what savings might work for you!
It’s wise to consider going beyond the traditional coverage to “fill in the gaps”. For example, you may want additional protection for an extensive electronics set-up or a family heirloom piece of jewelry. Again, ask your agent for advice on what makes sense for you and your belongings.
4.You’re Not Too Young: Don’t Forget Life Insurance
Millennials, make sure you buy a life insurance policy now! It’s never too soon to plan for your future, and you can save money–it’s generally cheaper to buy a life insurance policy when you’re young and healthy. Should something happen to you, your life insurance policy will help your family cover student loan debt, a mortgage, and other end-of-life expenses. With a life insurance policy, you’ll also be setting your children up for financial protection in regards to their education or childcare needs. In another hope-you-won’t-need-it-but-better-safe-than-sorry case, consider long-term disability coverage. If an accident happens and you’re unable to work, this can really help you.
5.Make Sure Your Agent is Independent
Lastly, look around for an independent insurance agent. This means the agent works with multiple insurance carriers, rather than someone who can only sell one brand of insurance. An independent insurance agent will help you get the best coverage at the best price. Also, independent agents have a wider swath of knowledge and experience, so they can present all of your options and help you make an informed choice.