Every parent wants to send their child off into the world prepared with survival skills, and their having a strong knowledge of insurance shouldn’t be overlooked. Here are three things young adults need to know about insurance.
Insurance is spending money to save money
For young adults trying to establish themselves personally and professionally, the idea of paying for something they may never use seems like a waste of money. For the generation currently coming of age, dealing with things that do not offer instant gratification is especially hard.
However, it is vital they understand that the protections insurance coverage offers are more than worth the premiums they pay. Portray it as being similar to spending money to make money—insurance coverage is an investment in a better future.
Healthy people need health insurance
When you are young and healthy, it’s easy to think that health insurance is expendable. Many young adults decide to skip coverage and take the risk, but it’s key for them to understand that there is more to health insurance than covering chronic conditions. It’s also there for accidents, emergencies and other unexpected issues. Over half of all bankruptcies in the United States are due, at least in part, to health coverage related debts, and one accident could sink your child’s credit and overall financial standing.
They need long-term disability coverage
Early adulthood is a time people feel invincible, but that is far from the truth. In fact, the probability of someone 25 or younger becoming disabled before reaching retirement age is three times their odds of dying. It is rare for employers to provide disability coverage, and the need is greatest for those just starting their careers. They have minimal money saved and more years ahead of them before they can feasibly retire.
Of course, navigating the world of insurance can be overwhelming for anyone, so refer your young adult child to an independent insurance broker.
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