5 Insurance Tips for Young Adults

For many young adults, insurance is an intimidating and daunting topic. Well, this isn’t necessarily true. Insurance is something that all young adults should know about, because for many purchasing it is just around the corner. Many young adults are already paying their car insurance. Soon, health, homeowners, and life insurance will be added on as well.

Here are some tips for purchasing insurance without spending a ton.

  1. Check if your employer offers insurance-Many employers offer health insurance, but you may not be aware of it. Ask your employer if they offer any insurance options and be sure to take advantage of it because this coverage will usually be cheaper  than purchasing insurance on your own.
  1. Ask a few insurance agencies before deciding on one-You’ll be surprised about the different price options there are for the same coverage. You could potentially save hundreds of dollars just by shopping around.
  1. Find out what discounts your insurance agency offers-Many insurance agencies offer discounts for things such as being a good driver or a good student. Be sure to ask about these discounts, because they could help save you a bundle.
  1. Research the different kinds of health insurance offered to you-As we discussed in a previous blog, the Affordable Care Act has changed a few things in regards to health insurance for young adults.  Generally, young adults can stay on their parent’s insurance policy until the age of 26, which could save you money. Also, many schools and employers offer health insurance that will probably be more affordable than purchasing it on your own. If none of these are feasible for you, look into your states Medicaid options. Many states expanded their Medicaid coverage with the introduction of the Affordable Care Act. Just make sure that you’re covered with health insurance one way or another.
  1. Keep your deductible as high as possible-By paying a higher deductible (ie, the amount you spend out-of-pocket before your insurance kicks in), you’re premiums will be lower.  But, don’t make your deductible higher than you can afford, keep it at a reasonable price.

To learn more about insurance, visit Futurebuck and register for our free online course, which has a video module on insurance. Also, be sure to subscribe to our blog to get notifications when we have new blog posts.