Millennials are often the subject of news stories that either praise or criticize the generation born during the 1980s and ’90s. Young, tech-savvy teens and adults often get derided as the “me” generation when, in fact, every other generation before them has been criticized by their elders.
But there’s one thing that the nation’s youngest adults may be forgetting about: insurance. The majority of millennials already have car insurance for their vehicles, but there’s more to insurance policies than protecting an automobile. Here are three other types of insurance that it’s not too late for millennials to consider:
- Renters Insurance: Renters insurance is a necessity for those in apartments and townhouses who need to protect their belongings — whether from theft or due to a disaster. The funny thing is that many millennials think it costs far more to protect an apartment than it does a car. When asked about the cost of renters insurance, 29% of millennials guessed that it costs around $1,000 per year, when it’s actually just $187 annually on average.
Part of this confusion may stem from the cost of their car insurance. Where car insurance rates are often determined by the drivers age, with rates increasing for those under 25 or over 70, renters insurance rates are dependent on fewer factors. As such, it typically costs far less to insure a rented property, especially in a typical apartment or townhouse complex, than it does to insure a car.
- Health Insurance: Traditionally, workers — even those in their twenties — can receive their health insurance through their employers’ benefits plan. Yet with more millennials working part-time or freelance, there may be less room for younger workers to pick a plan that suits them — and their budgets. However, health insurance is a necessity today, and thanks to the Affordable Care Act, it’s easier for those who don’t have coverage — about 12.9% of Americans as of last year — to purchase a plan through an insurance company.
- Life Insurance: Many younger people may not think they need life insurance, but it’s always important to look to the future. Those who are married or have children may especially want to consider getting life insurance to help cover the cost of living for their loved ones, but planning for the future is something that anyone can do.
Like with renters insurance, younger people often significantly overestimate the cost of life insurance. Those in the Millennial generation overestimate the price of life insurance by about 213%; by contrast, even those from Generation X guess that it’s about 119% more expensive than it really is. They’re not alone, though — around 80% of the general population makes the same mistake.
If you have questions about getting a policy for your apartment, your car, or even yourself, make sure to get a quote, and ask us if you have any questions.