People may not be readily aware of it, but knowing when to get an insurance is just as important as knowing what type of insurance to get.
By now, you already have an idea how purchasing the right policy can help you lead a healthy, fulfilled, and secure life. All there is to it is to identify which suits your lifestyle and your budget best.
There are certain types of insurance you’ll never stop needing, but there are also the ones that you’ll only need at a certain point. Our lifestyle tends to change as we grow older and get bigger responsibilities, so your plans should be flexible enough to accommodate those adjustments. Remember: As your life changes, so should your coverage.
There is timing for everything, including insurance. And here, your cues are your personal milestones:
When You Reach Legal Age
The exact age may vary depending on your parents’ insurance provider, but by the time you’re in your early 20’s, you may no longer be covered by their health insurance. Health insurance is a kind of policy you’ll never stop needing, so it’s important to invest on it immediately after you leave the protection of your parents’ policy.
If you have a car or a motor vehicle, you will need an insurance. It is a legal requirement, after all. Insurance rates for this type of policy vary depending on factors such as your age, budget, type of vehicle, and how often you drive.
When You Get a Job
You are entitled to various benefits when you get employed, including some important types of insurance policies. They include health (dental and medical, usually) insurance, and disability insurance – especially if you have a high-risk job. Some employers do not provide disability insurance, so you may have to check with yours to be sure.
You can still opt to buy a private policy even if you already have employer-provided insurance, especially if you’re looking to augment your insurance claim.
When You Move Out
Not everyone will be lucky enough to have a place of their own from the get-go. Chances are the young adult will have to rent a place to live when they move out from their family home.
Renter's insurance protects the policy holder in case of a fire, leak, or storm. While policies differ, they usually cover the cost of replacing some of your personal property and the expense from your temporary living situation should you be unable to occupy your rented home.
When You’re Preparing for the Rest of Your Life
As you move from young adulthood to become a full-fledged grown-up, you need to equip yourself better against the uncertainty of the future.
First on your list should be to acquire life insurance of some kind. It gives monetary benefit to the people that are financially dependent on you if you pass away. It also provides for burial, funeral and other final expenses on your part. If you have minor children, a stay-at-home spouse, or out-of-work parents that may face financial hardship if you passed away, this type of insurance should be high on your priority list. Again, many people will be able to get coverage through their employers, but not always as much as they need. So feel free to augment it if you must.
Another policy you may want to consider around this time is long-term care insurance. It covers comprehensive care for people who are aging or disabled and need help with daily living. While it may seem quite early, remember that you get more expensive to insure the older you get which is why it's a good idea to start looking at long-term care insurance well before you need it so you can save money.
By this point you may already have your own house, too. If so, you need to get a homeowner’s insurance. It’s one of those non-negotiables that every responsible adult must have, and it covers everything from the structure itself to your belongings to liability should someone be injured on your property.
Having your basic needs strategically covered will save you not only from financial pitfalls, but from serious headaches as well. Whatever type of insurance you are looking for, always get multiple quotes from different insurance providers and read your policy closely before signing anything. Like we always say, cheap insurance is not always good, and good insurance is not always cheap.
Here at GoBear, we have the right tool to help you compare the best plans from trustworthy and reliable insurance companies.