So far, adulthood has been wrapped up in massive student debt, lack of job opportunities, mortgage, and an ongoing pandemic. Okay, there have been nice things here and there, too, but we need to face the fact that being a financially responsible adult in this day and age certainly doesn’t come with the same simplicity and straightforwardness that our parents and their parents faced.
What we do know is that some financial investments like your car insurance are necessary, while some a little less so. Distinguishing between them, discovering providers you can trust, and setting yourself up for a financially stable future is what this little guide is all about. Here are a few insurance-focused tips for any millennial to help you navigate the murky waters of insurance and pick your investments wisely!
Make sure your car is covered
There are all kinds of policies you can take out to protect your possessions, but it’s best to focus on the items in your life that you use daily and that are exposed to the greatest risk, such as your car. Look for ways to reduce the coverage, whether it’s due to energy efficiency of your vehicle, or the frequency of use. Different insurance companies will offer rewards and reduced fees for various reasons.
Think about life insurance
You might feel young and vibrant, but you have actually entered that stage of your life when it’s prudent to think about life insurance. While there are two main types of life insurance, you need to consider your current financial capability for the right coverage as opposed to your projected future financial capabilities.
If you expect your business to grow substantially, and thus your salary, or if you expect to get a significant promotion, then perhaps permanent life insurance is a great option. Term insurance will limit you to a specific number of years, but it’s also worth looking into, if your finances are looking thin at the moment. However, the younger you are, the better your offer will be, as most insurance policies get more expensive as we age, so it’s wise to invest early!
Be wary of unnecessary add-ons
Scammers aside, insurance companies have found all kinds of gray areas and loopholes to upsell and cross-sell their customers. When you walk into a meeting with your potential insurance agent, you need to know that they’ll do their best to sell you various kinds of, often costly add-ons that you won’t use or need.
Fortunately, you can seek help and file for an insurance refund to make sure that you get your money back if you have been sold an add-on or warranty you didn’t want or need. You’d be surprised how many people accidentally pay larger monthly fees on the kind of coverage they never agreed upon initially. Knowing your rights is the best way around these issues, but also knowing you can ask for a refund is a good way to keep your options open.
Shop around for deals and discounts
One company might advertise itself as the cheapest in your region, but another might have better deals when you actually set up an appointment. To stay competitive, many insurance companies are offering all kinds of perks and discounts to their new clients – it’s all about finding the right solution that fits both the business and the individual.
That’s why this decision shouldn’t be made rashly. Consider various options, book a few appointments, and talk to more people. You’re under no obligation to sign a contract right then and there. You can take their offers home to consider them more thoroughly and only then pick what makes sense.
No need to go it alone
One major perk of being a millennial is that you are not just tech savvy and able to use a wide array of tools to help determine the right coverage for different aspects of your life. You also have access to entire networks of people who specialize in this kind of decision-making for individuals as well as families.
For first-timers looking for the right policies, you should consider an independent advisor who knows your market, who is familiar with the best and most trustworthy players, and who is capable of determining something that constitutes a fair price and good value. There’s no need to spend months reading up on something a professional can help you with – although some level of knowledge is advisable entering such a complex contract.
Life is already filled with all kinds of complications that you cannot avoid, so you might be better off preparing for some of them in advance. This is where insurance policies help give you peace of mind, as you’ll be able to lead a more secure existence, knowing that you’ve invested in policies that protect your health, life, and your valuable possessions. Hopefully, this guide will help you avoid unnecessary spending, but actually give you the directions towards your smartest options.
