Types of insurance every millennial needs to know about
When you’re only starting out in the working world, it’s easy to pass up insurance for more money to spend on shopping, entertainment and more. Some insurance premiums have hefty costs that cut away most of your salary which can be upsetting, but once you learn to understand how important insurance is for your life, will you be comfortable with spending that money on a good cause.
Here are a few insurance options to consider:
• Health insurance: Medical aid is one of the most important insurance policies that every individual should sacrifice part of their salary for. Uninsured people will miss out on the opportunity to get medical care, should something happen to them. Whether you choose to have a hospital plan or a full medical plan, based on your health conditions, having health insurance will protect you against paying for care should any accident, disease or sickness land you up in hospital. The scary thing is that you never know when something could happen, so it’s important that you insure yourself from the minute you have to go off of your parents’ medical aid or simply from the minute you can afford it.
• Vision or dental insurance: If you wear glasses, vision insurance is a no-brainer. This must-have insurance policy will help you pay for any expenses related to eye care such as routine yearly eye exams, vision corrective wear, contact lens examinations, eye surgery and more. The same goes for dental insurance. If you’ve had problems with your teeth and gums, you’ll know the expense of fillings, braces and root canal treatment. Often these insurances can be incorporated into your health insurance plan, but if not, make a plan to sign up for a premium that you can afford. These visits are extremely expensive and cannot be put off, so knowing you don’t need to have the money to cover it in cash will give you peace of mind.
• Life insurance: As you enter the period of your life where you have dependents, life insurance becomes essential. If you have a stay-at-home spouse, children or debt that may be transferred to a cosigner in the event of your death, you need life insurance. The premium you pay will cover your family, should you pass away. It will also save your family on expensive funeral expenses if you choose that insurance option.
• Disability insurance: Much like health insurance, disability insurance is one of those policies that is put into place if something were to happen to you. It is especially important for younger generations as unforeseen accidents happen in the blink of an eye. If you become disabled, not only are you not able to work, but your medical and care costs will rise. These policies come in short-term and long-term, so find something you can afford in case of emergency.
• Homeowners insurance: If you are already a homeowner and are paying off a bond, you’ll need to have homeowners insurance. This will cover you for any accident that happens to your home, for example, if your house burns down, gets robbed, is vandalised or damaged due to weather conditions. There is further household contents insurance which can also be taken out, according to specific amounts, which can then cover your possessions if you get robbed.
• Travel insurance: If you’ve decided to take a gap year or travel in your time off, travel insurance is a must. While it may be an expensive add-on option, you’ll never have to worry about anything happening to your belongings. Third-party travel insurance is a cheaper option, and if something happens to your credit card, used to pay for your trip, at least you’re covered.
• Credit insurance: If you’re not familiar with credit insurance, then you may be wondering what the credit life insurance definition is. It’s a type of insurance that pays off one or more existing debts in the event of a death, disability, or in rare cases, unemployment. Again, if you have any dependents, this type of credit card insurance can be a financial lifesaver if things go south.
• Tuition Insurance: Studying should never have to be a financial worry and, unfortunately, because fees are so high, it is. If you want to progress in your career and study something new, tuition insurance should be a consideration. When you work and study at the same time, it could become difficult to juggle both areas while attending to your family. If you ever need to drop out of your degree, you’ll be refunded in full or part of the fee you’ve paid.
Final words
It’s never pleasant to think about the worst possible events, but it’s important to have an understanding of the precaution you could take if something were to happen. Sometimes you need to think beyond your current circumstances and start making a plan for your older years. If you start working towards these goals now, you can ensure that everything is covered for you and your loved ones in the near future.
