Insurance might not be the most exciting topic for college students, but it’s a critical aspect
of adulting that often goes overlooked – until it is needed. As you navigate your academic journey and prepare for life
after graduation, understanding various types of insurance is essential for safeguarding your future.
Let’s delve into the world of insurance, breaking down the pros, cons, and why it’s never too early to
start thinking about it.
Note: this article gives a brief overview of various types of insurances out
there, we will be posting a series of articles later on that will dive deeper into each kind of insurance.
- Health Insurance:
Health insurance is one of the most important must-have insurances of them all because of the way the healthcare system is constructed in the United States. The medical expenses for simple check-up could cost up to $500 per visit, while more serious care such as surgeries, prescriptions, and lab testing could cost much more (we are speaking about tens of thousands of dollars). Having valid insurance lets you overcome those costs and get needed care as you don’t have to panic that you won’t be able to cover the costs of treatment every time you feel sick.
One thing to consider when looking at various health insurances plans is the trade-off between the deductibles and insurance costs. It all comes out to personal preferences and having a low vs high deductible may significantly impact your budget as monthly insurance payments vary between the two. It is important to talk to a specialist (often companies you work for will offer one!) and do your homework on the available plans out there in order to choose the one that will fit you the best. - Renter’s Insurance:
Renter’s insurance protects your personal belongings in case of theft, fire, or other covered events. It’s relatively affordable, and many policies cover liability, providing financial protection if someone is injured while in your rented space. Things to consider is that the coverage might not extend to all types of disasters, and there may be limitations on certain high-value items. It’s essential to understand the terms and conditions of your policy. But if you upstairs neighbor floods their apartment, you’ll be glad you had this coverage! - Auto Insurance:
Auto insurance – another very important type of insurance if you own a car. Important to notice that this is the only type of insurance that is mandatory. It provides financial protection in case of accidents, covering damages to your vehicle, medical expenses, and liability for injuries or property damage to others. Often, premiums can be costly, especially for young drivers. Coverage options and rates vary, so it’s crucial to shop around for the best deal. There are probably hundreds of car insurance plans that one can research, and each comes with its own benefits and costs. Stay tuned to our blog as soon we will post some life hacks on how to minimize your auto-insurance costs and pick the right coverage for you. - Disability Insurance:
Disability insurance provides income protection if you’re unable to work due to illness or injury. It ensures that you can meet your financial obligations even if you’re unable to earn an income temporarily or permanently. Notice that it can be expensive, and coverage may vary. Some policies have waiting periods before benefits kick in, and they might not cover certain pre-existing conditions. It is recommended to consider it especially if you have a job that requires a lot of physical work.
In conclusion, understanding different types of insurance is a crucial step in preparing for
the uncertainties of life after college. While the prospect of insurance might seem daunting, each
type serves a unique purpose in safeguarding your financial well-being. Start thinking about these
aspects now, assess your needs, and gradually build a comprehensive insurance portfolio that aligns
with your life goals. We will be diving deeper into every one of the insurances mentioned above with
recommendations on how to research different plans and how to find the most optimal one for you.