Image result for Insurance FOR Graduates

As new graduates, a new chapter starts in your life in which you will soon realize things do not always work out for the best.  Living out on your own even while away at school comes with a lot of responsibilities.  Insurance can help protect yourself against situations ranging from a flooded apartment to an injury.  Buying insurance can seem exhausting when you are trying to understand terms and coverage.  An insurance agent can inform you on policies or answer any questions you may have.  Listed below you will find the types of insurance that new graduates should consider:

Insurance Options for New Graduates

Health

Health insurance can be very expensive to most of us and especially for new graduates to even consider purchasing.  Because you are young, you exercise and eat well you think you do not need health coverage.  But just think if you get in an accident with no coverage you are risking having years of medical debt from bills you have to pay.  Not to mention the lack of quality care you could receive if you do have to visit a doctor.  If you are starting a new job, your employer could offer a health plan so it would be wise to look into.  Premium and deductible are two words to understand when reviewing health plans.  Premium is how much you will pay the company a month and deductible is the amount of money you will have to pay before company begins to cover costs.

Dental

Your health insurance coverage does not include a dental plan.  If your employer’s health package offers dental insurance it would be a good idea to take it.  If you are still on your parents insurance take care of any dental issues now.  Get informed on the coverage your parents insurance has so you can research a similar and affordable plan for yourself.  You may think that dental insurance is a coverage you can skip but seeing a dentist regularly can prevent serious oral diseases in the future.

Disability

Coverage will replace a portion of your income if you become disabled and unable to work.  Check with your employer if coverage is offered if it is not think about purchasing on your own. There are two types of disability insurance: short-term covers you between 26 weeks and a year after you become disabled; long-term insurance coverage occurs after the first year and benefits could range between two years to retirement age.  Prices depend on factors such as occupation, heath status and elimination period which means how quickly insurance will pay after you become disabled.  Higher monthly premiums will occur if you choose a shorter elimination period.  Social Security can also pay out disability if you have worked for a year or more but it can take several months for an application to get approved.  Keep in mind though you may be denied if you are not permanently disabled.

Life

Many of us never think about purchasing life insurance for ourselves but for new graduates there are a few benefits that come from purchasing.  If someone co-signed on your private student loans they are responsible for paying off balance if you pass away.  Taking out life insurance and naming your co-signer as a beneficiary can protect them from facing a financial burden later.  Another benefit to buying insurance now is that you can lock in rates as they are cheaper when you are young.  And finally at your current age life insurance rates are more affordable and can easily be fit into your budget.

Auto Insurance

Auto insurance covers the financial liability you could face if your vehicle is involved in an accident causing damages to an individual or their property.  Make sure you know your states minimum requirements.  When buying a vehicle, know the model you choose could cost more in insurance premiums.  You could potentially pay more insurance for a sports car as opposed to a sedan.  Your insurance rate will be based on vehicle, age, gender, driving record and address.  There are three types of coverage liability, collision and comprehensive and uninsured/underinsured motorist.  Liability carries only minimum state requirements and pays for damages you caused to others only.  Comprehensive and collision covers damage to your vehicle in an accident and events other than collision.  Uninsured/underinsured motorist coverage protects you if involved in an accident with an at fault driver that does not have a license, insurance or it is a hit and run.

Renters Insurance

It is not necessary to purchase renters insurance but it is an inexpensive was to protect yourself.  While away at college or a new city you may not quickly rush to buy a home or an apartment.  So you may not consider renters insurance but you do have valuable things.  If there is a fire, your landlord’s insurance policy will cover the building but nothing inside the property.  With no renters insurance you could be stuck buying a new laptop, television and even clothing.  Some plans start at $12 a month depending on the property and liability coverage chosen.

Feel free to contact our offices for additional information or quotes for any of the information above.