Millennials are notoriously known for living in the moment and not thinking ahead, which can be dangerous when it comes to finances, particularly without budgeting skills. Yet despite this tendency to avoid planning for their futures, 78% of millennials say they purchased some form of insurance as adults; so what types of policies should they purchase? Life for millennials differs slightly from other generations in that many live at home until getting married or having kids of their own – meaning different insurance needs exist when considering living arrangements than with previous generations.
As such, many millennials don’t incur traditional expenses such as car payments and mortgage payments, yet still face expenses more common among their generation such as student loan bills and rent payments.
3 Best Types Of Insurance For Millennials
1) Auto Insurance For Millennials
Millennials are the least likely generation to purchase auto insurance in almost 30 years. Millennials are also the most likely generation to believe that their auto insurance isn’t worth the money. Auto insurance is the most important type of insurance for any young driver. A majority of car accidents are caused by driver error, not mechanical issues. Whether you’ve just obtained your driver’s license or have been driving for decades, you can still benefit from having your car insured.
Auto insurance can protect you in the event of an accident. It can cover the cost of repairs or even pay for a new car if yours is deemed a total loss. It can also protect your assets by paying for medical bills and legal costs if you’re at fault in an accident. Auto insurance rates are based on five main factors: your age, your driving record, where you live, the type of car you drive, and your coverage level. Many young people mistakenly believe that they don’t need to purchase the most expensive coverage level to get a good rate, but that’s not true. One of the 3 Best Types of Insurance for Millennials.
2) Health Insurance For Millennials
Health insurance is particularly essential for millennials, as they comprise the largest generation living with a chronic illness today. According to studies conducted by the American Psychological Association, this generation experienced higher rates of depression and anxiety than any other generation studied. Health insurance can protect you against various medical expenses, from doctor visits to prescription medication costs; even more serious concerns such as disability or even death can be covered with this coverage.
Health insurance premiums depend on numerous factors, including age, health and the type of plan purchased. With adequate protection in place, you can shield yourself and your family from huge medical bills in case of an accident or illness – something millennials battling chronic health conditions such as diabetes or asthma may understand more than other generations. Here are the 3 Best Types of Coverage Available to Millennials today.
3) Mortgage/Real Estate Protection For Millennials
Real estate protection insurance serves to safeguard assets against natural disasters, particularly hurricanes. With increased hurricane activity comes an increase in natural disasters; real estate coverage provides vital protection from fire, floods, tornadoes and even vandalism.
Real estate and mortgage protection vary by state and company; typically it covers repairs or replacement costs in addition to cost of living elsewhere while repairs take place, which can be especially helpful if repairs take an extended amount of time. It was recently featured in Forbes as one of the three Best Insurance Types for Millennials.
Final Words: Is It worth It?
As is evident from this research, millennials have specific insurance needs. Auto insurance is vitally important for drivers of any age; but especially so for millennials as they’re more prone to accidents. Auto insurance rates depend on factors like your age and driving record – as a millennial driver it is crucial that you understand these elements so as to modify driving behaviors as necessary to reduce premium costs by showing your insurer you are low-risk driver.
Health insurance is particularly essential for millennials, as they are the generation most likely to develop chronic illnesses. Rates depend on several factors including your age and health status; chronic illness may make finding affordable health coverage more challenging; but still you have options; just shop around until you find one that meets all your requirements based on features and benefits.
Mortgage/real estate protection insurance has become more essential as natural disasters increase in frequency. By understanding what kinds of coverage best suit millennials, you can ensure you have adequate protection.
Also Refer :- The Importance of Insurance in Your Everyday Life