Health Insurance Links COBRA Law Information American College Student Association The Insurance Information Institute |
Navigating the Insurance Processas a Young AdultFinishing up school typically marks the end of being financially dependent on one's parents. While this is the first of many adult milestones, graduation comes with its own share of challenges. Most graduates discover that this exciting time includes more drudgery than they expected. Things like finding a job, buying or renting a house or apartment, and paying one's own bills can be all-consuming for the young adult who is doing them for the very first time. Add to that the daunting task of navigating the complex world of car, health, and home/renter's insurance, and any new graduate would start feeling overwhelmed.Though health insurance is typically covered by employers, many recent graduates discover that they need to secure some kind of policty between their parents' policies ending and their new employment policy kicking in. They can expect to receive coverage through COBRA, which is a federal law requiring extended health coverage to be made available for terminated employees, students coming off their parents' insurance, and employees who have chosen to leave their current jobs. While a COBRA policy is more expensive, it is designed to be temporary and provide for unemployed, uninsured individuals in case of a medical condition or emergency. As soon as new employees are accepted into their company health plan, they can simply stop paying on COBRA and begin receiving insurance through their employer. Auto insurance is another one that runs out once a student has graduated and moved into a home of his or her own. Unfortunately, younger drivers -- especially younger men -- are subject to higher insurance premiums than other drivers. However, young adults can request automobile insurance quotes from companies in order to secure the best possible rates. Some companies are even specifically set up to work with new drivers, so that they can offer the best rates and most comprehensive information to these individuals. Recent graduates can also save by driving older, less valuable vehicles, choosing cars instead of SUVs or trucks, and buying reliable vehicles instead of sporty ones. Most graduates decide to find their own housing shortly after graduation, bringing up the issue of yet another type of insurance. If they are fortunate enough to have the assets necessary to buy a home, these young adults will need to purchase homeowners insurance. If they are, as is more common, renting an apartment or townhouse, they will need to carry a renter insurance policy to protect their belongings. Even if they are planning to live at home for some time while they save up money for a place of their own, young people can all benefit from learning about the different types of insurance policies and how they work. Graduating college and moving out into the world can be both terrifying and exciting. Unfortunately, schools do not prepare their students for many of the practical aspects of life outside a dorm, but individuals can educate themselves through reading, discussions with financial advisors and insurance agents, and of course, their parents. Father and Mother may not always know best, but they have "been there, done that," and their advice is generally worth hearing. |
Auto and Home Insurance Links Car Insurance Tips Homeowners Insurance Mistakes Do I Need Renter's Insurance? |