The 5 Best Insurance Tips for Millennials

Millennials are now at the stage in life where they need financial services. Many have already begun securing student loans, purchasing or renting homes, buying cars, and auto insurance policies. They also need health insurance for themselves or a family. Having children adds another layer of assessment for present and future financial services. 

With greater financial responsibility comes greater financial risk. The loss of insurance, like coming off of parents’ policies, also increases financial risk for millennials. Insurance helps to mitigate the financial risk in our lives. However, a survey by Princeton Survey Research Associates International indicates that millennials could be the most underinsured of all generations.

It’s common for millennials to think of insurance as a high-cost investment. However, not having insurance can cost a lot more in the long run when an unfortunate event occurs. This can lead to high-dollar losses being paid out of pocket. 

For those who are not fully insured, they might find themselves on the hook for a TV or computer loan, even after the items are lost due to a fire or flooding in their home. Not having rental insurance to cover the losses can leave you without furniture and other items you need in your home.

Insurance for millennials is essential for peace of mind in knowing that they’re covered when medical emergencies or personal losses occur. And in many cases, insurance pricing is more affordable than one realizes. The types of insurance for millennials to consider purchasing include:

• Health Insurance
• Life Insurance
• Home or Rental Insurance
• Auto Insurance
• Short Term Disability Insurance
• Long Term Disability Insurance

BUYING INSURANCE FOR MILLENNIALS: TOP 5 TIPS

The millennial generation needs insurance just as much as older generations. Below we explore five key insurance tips to help millennials secure the right coverage without overpaying:

1. Look beyond the lowest pricing
2. Identify ways to save
3. Consider gaps in coverage
4. Work with an insurance broker
5. Apply for jobs with benefits coverage

#1. LOOK BEYOND THE LOWEST PRICING

If the purpose of insurance is to mitigate financial risk, then the number one goal when shopping for insurance is to find the right level of coverage for your needs. It can be easy to select the lowest priced coverage. However, doing so could mean you don’t have the level or type of coverage you need when it’s time to file a claim. Not having enough coverage could leave you in a financial bind.

The priority when shopping for insurance is to determine the type of coverage you need. Next, identify carriers who can provide the most comprehensive policy that fits your budget. 

#2. IDENTIFY WAYS TO SAVE

Once you are clear on your coverage needs and budget requirements, look for ways to save on insurance coverage. Ask your insurance broker what types of discounts are available. Many carriers offer discounts for college students and paying your policy in full upfront. Several providers also offer discounts for “bundling” different policies together, such as rental and car insurance or car insurance on more than one vehicle (i.e., multi-vehicle coverage).   

#3. CONSIDER GAPS IN COVERAGE

It’s not fun to file a claim with your insurance provider to find out you are not covered in the way you thought you were. Average insurance policies generally cover your basic insurance needs. However, if you have unique needs, you want to make sure you have coverage for that. For example, if you own high-dollar electronics or work from home, you might need additional coverage outlined in your homeowners/rental policy or special liability coverage, respectively.

It’s also common for millennials to think they don’t need certain types of insurance, such as life insurance and disability insurance. However, you never know when something might happen where these types of policies are beneficial. Also, life insurance and disability insurance cost less when you’re young and healthy.

Life insurance can carry your family through a difficult period in the unfortunate event that you die prematurely. Further, statistics show that disabilities can occur at any age. The Council for Disability Awareness reports that 25% of 20-year-olds will be disabled before reaching the age of retirement. Disabilities can put you out of work for the short or long-term. Disability insurance helps to ensure you can still pay your bills and put food on the table under such circumstances. 

#4. WORK WITH AN INSURANCE BROKER

Purchasing a comprehensive insurance package takes a lot of research and effort. Working with an insurance broker can take the guesswork out of buying insurance for millennials. Unlike insurance agents who work on behalf of insurance companies, brokers work on behalf of the consumer. Your needs come first, not the needs of the insurance carrier.

Brokers can explain the ins and outs of insurance, conduct a risk assessment based on your current lifestyle and needs, ensure you don’t have any gaps in coverage and provide recommendations that fit within your budget. Brokers also work with numerous carriers, so they’re your one-stop-shop for insurance, saving you time and resources. 

A licensed, qualified broker can shop around for the best insurance policies to provide the coverage you need at the best price possible; it’s also common for brokers to receive broker discounts from insurance carriers. As a result, they can pass those savings on to you. Brokers also like to forge long-term relationships, so you won’t have to go through the introductory phase every time you need to purchase new insurance or tweak your existing plans.

#5. APPLY FOR JOBS WITH BENEFITS COVERAGE

Insurance coverage is essential. Unfortunately, in some instances, price becomes a barrier to individuals purchasing the combination of insurance types and levels needed. Fortunately, many employers offer benefits to their employees. Employer-offered benefits are group coverage plans that are often free or a fraction of the cost compared to individual plans. That’s why it’s a smart move for you to look for employers that offer a comprehensive benefits plan that covers the majority of the cost. Health insurance, life insurance, and disability insurance are common insurance coverages provided by many employers.

INSURANCE FOR MILLENNIALS WITH KBI BENEFITS

If you’re in the market for insurance as a millennial, KBI Benefits has you covered. We work with numerous insurance companies to help you secure the most comprehensive policies available at the most affordable price to meet your needs. We will partner with you to determine your risks, identify gaps in coverage, and secure the best plans for you now and in the future.

Contact us today by submitting our online contact form or calling us at 408.366.8880. We look forward to working with you!