The Financial Journey Begins - Insurance
We’re finally here, the last blog in the Financial Journey series. Thank you so much for sticking with the series this entire time and we hope that our advice has made a difference in the beginning of your financial journey. Without further ado, the finale: Insurance!
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Insurance, good ol’ insurance. Everybody pays for it, but not many of us understand why. This is especially true if it’s your first time looking into it! In this final installment of the series, we’ll be looking into the importance of insurance, how to keep insurance cheap, and what type of insurance would be best for you.
Now, why would you need insurance? There’s nothing wrong with your health, nothing wrong with what you own, so why would someone like you need to have coverage at all? Well, let me lay it out plainly for you; insurance exists because the future is uncertain - plain and simple. There's a very low chance you’ll lose your house in a fire, there’s a very low chance you’ll run into health issues, and there’s a very low chance you’ll get into a car accident. Despite these instances having a low chance of happening, there’s always a chance that these terrible things could occur. That is exactly why insurance exists. While insurance is a must for any adult, it’s important to get coverage in the correct areas as well.
The three main areas where insurance is needed for anyone are: health, life, and auto. Home insurance is also important if applicable. These types of insurance will cover the bases for adequate coverage. Insurance is obtainable in many different places, which will make it much more affordable.
The first is through your job. Many jobs nowadays offer insurance to their employees. The same is true surprisingly with colleges. Universities can offer health insurance plans for their students which are typically very affordable. The final place, outside of the market, where you can find affordable insurance is through Medicaid. To obtain Medicaid you will have to apply for it and meet the thresholds for income.
One of the biggest benefits of getting health insurance now is creating a health history. This will benefit you greatly as you get older since having a good health history will likely get you cheaper insurance.
If you must turn to the marketplace, do not fret! There are still many ways to keep insurance expenses from being too much of a burden. One of the best ways to lower expenses is through bundling insurance plans. This will not only lower costs but also make it much easier to pay your premiums since they will all be with the same provider.
While keeping insurance cheap is super important, you still don’t know what kind to get. If you are looking into life insurance, term life is likely the way you will want to go. Term life is typically dirt cheap for young adults and provides adequate coverage. This will typically be the cheaper insurance you’ll need to pay for.
Although health and life insurance can be nice and cheap where you’re at in life right now, the same isn’t exactly true for auto insurance. Since young drivers are typically a little more accident-prone, you might have to pay a premium until you’re nice and settled in your adult life. While it’s a pain, there are ways to take it down a few points. Discounts exist for good students and good drivers as well.
Despite having insurance coverage, it is always wise to have measures that go beyond this. One “insurance policy” that has been discussed in the past is an emergency fund. To rehash what this is; an emergency fund is money that you will save up in case of an emergency. This includes things like a broken phone or a popped tire. Remember, emergency funds are a drag until you wish you had one.
Wow, what a ride it's been! We’ve covered everything you’ll need to get you started down the road to financial success. Now, all that’s left is to implement what you’ve learned. In this installment you were taught the basics of insurance; why we need it, the different types, and what to look for when you begin shopping around. Thank you all so much for sticking around until the end. We hope we’ve left a good imprint on you and look forward to seeing your success.
