Nobody likes to think too much and take too long about insurance. It’s tempting to see them as expenses that fall into the low precedence category, but the reality is they’re important issues to solve before you need them.
Your Earning Strength and Risk
Insurance can be about protecting yourself as an asset. Your earning potential affects your ability to pay off things like student loan debt, renting or buying a roof over your head, planning to have kids, buying a car, or even getting that dog you have all the time wanted.
And you value yourself as a productive asset higher when you’re young. Instead of being a time to play the odds and shrug off your statistically lower risk, this is a time to be sure you do not miss out on the value of that huge potential.
This is among the biggest mistakes millennials make when assessing their insurance needs. Whether it is a special type of insurance like medical malpractice insurance or international operating insurance or more common types such as life insurance, medical insurance, and renters insurance are all worth having, irrespective of your age.
The Risk of Not Having a Schedule
Especially if you are between the ages of 24-40, likelihood is you are fit and healthy, and you are just starting to see the light at the end of the tunnel finding your feet after college. You may finally start climbing your career ladder.
This is a reasonable time to consider things like life insurance or income protection insurance and say, “Why do I need that? I am healthy and young.”
But really your risk is not following the schedule or statistics. Things can occur at any time that will affect your ability to work, maintain your lifestyle and pay off your debts, or that will negatively impact your health.
The excellent news for millennials is that while you’re young and the statistics are still on your side, this is a good time to start insuring your risks because your premiums will be low.
Renters Insurance
This is an oft-overlooked type of insurance that people often kick themselves for not taking. Policies are largely low cost and can be a lifesaver in the event of a problem with a rental property.
Renters insurance is comparatively inexpensive for insurance companies to provide because they don’t need to insure the rental property themselves. Possessions can be valuable to us, whether or not they are stored in a rented property or owned. It seems reckless not to protect against the risks of fire, theft, or accidental damage to personal property, while also benefiting from liability insurance.
And most people who rent make the error of thinking these policies will be expensive, when in fact they’re very cheap in the event of an accident, and in providing peace of mind.
So, what needs to be considered when buying insurance?
Get suggestions.
Independent insurance agents can be of great help as you explore the insurance market. The days of old school agents are over, and you can expect a seamless experience with modern incarnations, and a balanced outlook, because of their lack of affiliation with any provider.
Buy enough cover.
With insurance, it’s important to remember that you’re protecting your assets from risk. Under-insuring your assets will put you in a bad position should the need for insurance arise. Don’t just focus on costs, and get enough protection
Get life insurance and protect your earning potential. Quick.
It’s cheaper to start protecting yourself now. Life insurance is an excellent way to protect your loved ones and dependents from your debts or even to be sure that misorganized personal finances do not affect their lives after your death. Doing so is smart.
If you are young then your greatest asset is commonly your earning potential, and that potential is higher when you’re young, so do the right thing and be sure you do not lose it.
Too many young people don’t insure their assets, their health and their lives. Misfortune doesn’t obey statistics. It’s a good idea to start discussing and examining the options available today.
