Graduation season is right around the corner. This is the time that many college graduates need to seriously think about what they want to do with their life. If you are (or will be) a recent college grad, then soon you will be applying for jobs, looking for places to live, and figuring out your overall future plans. In doing all of this, it may mean having to take control of your finances and getting out from under your parents wing. There will be big decisions to make, and one of them will be insurance. Find out which types of insurance you will need.
Health Insurance
Health insurance is one of the biggest concerns for everyone in the U.S. right now. Thanks to the Affordable Care Act, you are covered under your parents’ insurance until age 26, but it is smart to look into your own plan sooner than later. Many jobs will offer health insurance benefits, but until then, you should look into a short term medical insurance policy. Typically, it will cost around $50 a month for 12 months. These plans will cover catastrophic events instead of regular doctors’ appointments, immunizations, or pre-existing conditions.
Dental Insurance
Most health insurance policies do not include dental anymore. If you are lucky enough to obtain a job that offers dental, it is wise to take it. If not, it might be a good idea to skip dental altogether, especially if you have had your wisdom teeth removed. The monthly rates sometimes end up costing more than the twice yearly cleanings. Later on, if you have dental problems that you need to deal with, you can sign up for dental assistance programs that are similar to dental insurance.
Renter’s Insurance
Moving out of your parents’ house after graduation may occur because of necessity, option, or relocation. Either way, renting will most likely be what you will be doing for the next few years of your life. With renting comes renter’s insurance. While many buildings may have landlord insurance to cover the cost of the structure, it will not cover any of your belongings should anything happen. Renter’s insurance can cover things like theft, vandalism, smoke damage, and fire. Having renter’s insurance will make sure that your belongings will be taken care of, no matter where you end up living post-grad. Fortunately, renter’s insurance will add little cost to your insurance premium, which is another reason why everyone should get it.
Car Insurance
If you have been living at college for the past four years, you may not have owned a car. Whether you are buying your own car for the first time, or are using your parents’ car, you need to consider car insurance. When buying your own car, the model and year will affect the amount you pay per month. If your job requires a long commute, you should opt for a high deductible in order to lower your premiums. You could save some money by being added to your parents’ insurance, especially if you will be using their car for the time being. Make sure to discuss options with your parents, and work out a way to pay them every month.
Life Insurance
While you may think that you are way too young to be considering life insurance, being a college graduate brings some advantages to taking out a policy sooner than later. College loans add up, and even death will not get rid of them. If you still have student loans when you pass, those loans can be passed on to become a loved one’s burden. By taking out a life insurance policy now, you can ensure that your loans will not become a problem for your family.
If you are unsure about to where to start with renter’s, car, or life insurance, the professionals at TJ Woods Insurance in Worcester, MA will be sure to answer any questions you have, and even help to save you some money.
Do you have any tips for saving on insurance after college?
