Making big financial decisions is a part of being an adult. From applying for student loans and purchasing a home to having children and buying insurance, there are many decisions millennials are tackling at the moment, all of which can seem daunting.
This is especially the case when it comes to insurance. Surveys show that millennials are the generation that is the most underinsured. This is mostly because of the misconception of insurance being an expensive investment and the complicated terminology it often involves. That said, it’s important not to let this confusion stop you from ensuring a future financial protection. Below, seven insurance hacks and tips that will make this big financial step and adulting easier.
Be a smart shopper
When purchasing insurance, getting coverage that works best for your specific needs should be on top of your list of priorities. The last thing you want is to go for the cheapest option only to realize that it doesn’t provide decent coverage. Instead of getting the first, cheapest offer that comes your way, take your time to find the insurance policy where there is a balance between price and coverage being offered.
Shop smart, comparing different insurance companies’ prices and policies and talking to different insurers to see what they are offering. This will make sure that you get the most bang for your buck.
Don’t worry too much about the price tag
This is easier said than done, but going for the insurance policy with the lowest price tag is definitely something you want to avoid. It may be tempting to do so considering the number of expenses millennials have.
However, purchasing cheap insurance may be less financially beneficial, mostly because most of such policies don’t provide the right coverage or enough of it. Moreover, insurance doesn’t cost as much as many millennials think, and the numbers are usually much lower than they expect.
Be on the lookout for discounts and promotions
Just because you don’t go for the cheapest insurance policy doesn’t mean that you can’t save any money in the process. Your budget will play a big role here, so try to find adequate coverage and look for ways to save money on insurance costs. Oftentimes, insurers will offer various discounts, deals, and promotions in order to gain a competitive edge. Why not use it to your advantage?
You’ll often be able to get insurance deals with a low premium where you’ll be paying less in a time period of several months to a year. That said, make sure to zoom in on that fine print. This will prevent you from dealing with unpleasant situations such as insurers raising the premium too high after promotion ends.
Look for ways to save on car coverage
Millennials may not be as car-crazed compared to the generation of baby boomers. Nevertheless, cars are still a necessity these days, especially once kids come along. They’re also one of our most valuable possessions, so ensuring proper financial protection is imperative.
When shopping for car coverage, take time to do research and shop around. Knowing how to save on car insurance will help cut costs significantly while taking into account how you use or don’t use your car will help you get an insurance option that suits. Also, choose comprehensive over partial coverage. Sure, it’ll cost slightly more, but it’ll also cover a lot more.
Add extra coverage to help fill in the gaps
Every individual has a set of unique needs. Sometimes, average policies won’t be able to meet all those needs. In that case, additional coverage will be needed in order to fill in the gaps.
Some of the items that may need this extra coverage include high-value jewelry pieces, expensive musical equipment and instruments, or pricey electronic devices. Such valuables need to be properly covered, and this is a matter you can consult on with your independent insurance agent.
Seek professional guidance
Speaking of asking advice from an expert in the field, millennials can definitely benefit from seeking professional guidance. Whether you are building a business or starting a family, proper coverage is a must.
Although turning to Google for advice is the first thing that springs to the minds of tech-savvy millennials, there is so much misinformation online. Because of that, working with an independent insurance agent is your safest bet.
Get life insurance
Just like you use the right policies to secure your home, family, car, and your valuables, you should also make sure to invest in the right life insurance policy. You may be thinking “But I’m too young for life insurance!”.
The truth is, healthy and young individuals who purchase life insurance policies early on can get approved quickly. And they can get their life insurance for a lot cheaper. Not only does getting life insurance while young make more financial sense, but it is also going to give you a peace of mind and protect your family financially.
Ensuring a financial security net is an essential part of becoming an adult, and it doesn’t have to be all that complex. Lack of information and preconceived notions about insurance are the reasons why many millennials are driven away from investing in it. Now that you are equipped with some practical tips and hacks, you can finally take that first step with confidence.