Millennials and Insurance

By rachael pacee | January 23, 2019

Nobody likes to think too much and too long about insurance. There’s a temptation to view it as being an expense that falls into the low-priority category, but the reality is that it’s an important issue to get figured out before you need it.

Your Earning Power and Risk

Insurance can be about protecting yourself as an asset. Your potential to earn affects your ability to repay things like student loan debts, rent or buy a roof over your head, plan to have kids, buy a car, or even to get that dog that you’ve always wanted.

And the value of yourself as an earning asset is higher when you’re young. Rather than being a time to play the odds and ignore your statistically lower risks, it’s a time to ensure against losing the value of that enormous potential.

It’s one of the biggest mistake millennials make when they assess their insurance needs. Whether it is specialized types of insurance like medical malpractice insurance or international operations insurance or more common kinds like life insurance, health insurance, and renter’s insurance are all well worth having, irrespective of your age.

Risk Doesn’t Have a Schedule

Especially if you’re between 24-40, chances are you’re fit and healthy, and you’re just starting to see the light at the end of the tunnel that is finding your feet post-college. You may finally even have begun to start climbing the ladder of your career.

This is a natural time to think about things like life insurance or income protection insurance and say, “Why would I need that? I’m healthy and young.”

But the truth is that your risks don’t respect a schedule or statistics. Things can happen at any time that will affect your ability to work, maintain your lifestyle and service your debts, or that will impact negatively on your health.

The good news for millennials is that when you’re young and those statistics are still on your side, it’s a great time to start insuring against your risks because your premiums are going to be low.

Renter’s Insurance

It’s an often-overlooked insurance type that often leaves people kicking themselves because they didn’t take it out. Policies are mostly low-cost and can be lifesavers in the event of a problem with a rented property.

Renters Insurance is relatively cheap for insurance companies to provide because they don’t need to ensure the rental property itself. Possessions can be precious to us, be they kept in rented or owned properties. It seems careless not to protect against the risk of fire, theft, or accidental damage to personal property, while also getting the benefit of liability insurance.

And most people who rent make the mistake of thinking that these policies will be expensive, when in fact they’re a real bargain in the event of a mishap, and in providing peace of mind.

So, What Do I Need to Look for When Buying Insurance?

Get advice.

An independent insurance agent can be a massive help when you’re navigating the insurance marketplace. The days of the old-school agent are over, and you can expect a smooth experience with the modern incarnation, and a balanced view, due to their lack of affiliation to any provider.

Buy enough cover.

With insurance, it’s important to remember that you’re protecting assets against risk. Under-insuring an asset will put you in a bad position should the need for the insurance arise. Don’t focus purely on cost, and get enough cover

Get life insurance and protect your earning potential. Soon.

It’s cheaper to start protecting yourself now. Life insurance is a great way to protect your loved ones and dependents from your debts or even to ensure that poorly organized personal finances won’t impact their lives after your death. Doing it is smart.

If you’re young, then your greatest asset is often your earning potential, and that potential is higher when you’re younger, so do the right thing and ensure against losing it.

Too many younger people don’t insure their assets, their health, and their life. Misfortune doesn’t obey stats. It’s a great idea to start discussing and examining your available options today.