Watching our children grow up and become adults is one of the greatest parts of parenting. My oldest daughter graduated from Oregon State University with honors last month. I was in awe of the results of my labor, I doubt our children have any idea how proud we really are when they achieve the greatness we dreamed possible!
I have written several Blogs about insurance for our older teenagers and young adults. The best advice I can offer is that you continue to insure your child until they are defined by the financial aide office as “independent.” This is usually when they become married, enlist in the military, graduate from college or turn 26.
I now have 2-adult children who qualify as independent and both have very different insurance needs. The important thing my college graduate, 20-something, single children need to do is consider these three important insurance issues:
Protect and Build a Solid Insurance Credit Score:
- Understand how to have a strong and positive credit score and make every effort to keep it clean. Remember to start repaying the student loans as soon as possible. More people have negative damage on their credit scores due to student loan defaults then you can imagine.
- Purchase the appropriate insurance products and keep coverage without lapse continuously. When possible develop customer loyalty with one company.
- Build a solid and positive banking relationship.
- Identify where you have risks exposure, such as Renters Insurance for any of your personal property. The college graduate is entering the building stage of their future; a catastrophic loss of personal property can be intensely devastating in this stage. Starting a renter’s policy now, will build an underwriting record and protect from having to start all over during this critical time of life.
- Identify personal liability exposures, including professionally. The college graduate will either continue with education or enter the work force. Examine the career and professional liability exposures. Will your career involve other people’s children? Will you be traveling? Will you be sitting in an office? Talk with an Insurance expert or attorney and consider the type of liability insurance needed for this stage of life.
- Health and Medical insurance, most college graduates will no longer qualify to be covered under their parent’s health insurance policy. People in their 20’s often feel there is no chance a catastrophic medical illness or injury could ever happen to them. This is an important time to maintain health insurance, it’s also a time to make it part of living life, it will cost a certain amount of money to have health insurance weather we continue under the current medical insurance methods we have today, or end up with a government program supported by higher taxes–we will pay for health insurance one way or another and paying for it even when we are young is part of having what we need when we need it.
The college graduate may be accepting their first career position in the profession they chose. It’s an exciting time; there are bills to pay and things to buy! It’s easy to want as much of those pay checks as can be had, many young people accept their first professional positions and decline the employer provided benefits, which is a huge mistake! It’s better to establish a pattern of investment with the first pay check, you can’t miss something you never had.
Consider Insurance Products as Investments:
- Take advantage of employer provided benefits such as health insurance, and medical health savings plans. Some companies offer a wide range of credit union memberships, insurance agent relationships and investment opportunities. Take advantage of the services offered through your employer.
- Consider life insurance products due to the very low premiums and minimal health screening requirements.
- Most importantly is for the college graduate, 20-something to take the time to learn about and understand insurance, how it works and what types of insurance covers what part of life. The hope is that no one ever needs to make a claim–but, it sure is nice when it’s there at a time when it’s needed the most!
- Your Credit Score and How It Relates To Insurance
- Personal Property Inventory Documentation
- How to Get an Accurate Auto Insurance Quote
Glossary of Insurance Terms:
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