Education: Congratulations College Grads!
Over the next few weeks college students will don cap and gown, march into their graduation ceremony, and receive their diploma. In 2010-11, the estimated number of college degrees (Associates and Bachelor’s) for men and women will be 1,967,000, according to the National Center for Education Statistics.
With this accomplishment, they will be facing many new and exciting life changes involving work, money, living space and possessions. Unfortunately, even with a hard-earned diploma, many leave for the working world without knowledge of one of life’s critical products: Insurance. There are five basic insurance coverages the new college graduate should consider.
Auto Insurance – During college you may have been covered on your parents’ automobile policy. When you move out and/or purchase a vehicle titled in your name, you may no longer be covered under their policy.
Auto insurance helps cope with the expenses of accidents, vandalism or theft. Car accidents can create large liabilities for a driver, or owner of the vehicle, so the liability portion of auto coverage helps protect the owner as well as the driver. Plus, auto insurance covers many legal expenses if a driver is sued.
Renters Insurance – You finally moved into your own place. Some of the things you have accumulated are a TV, laptop, printer, DVD player, IPad, game systems, furniture, clothes and jewelry. You might not think they are worth much but they are – especially when you think how much it would cost to replace them.
You have a couple weeks before you start work, so you decide to take a short trip with some friends. After a great time, you return home and walk into your apartment to find your place has been trashed and your electronics have been stolen. What’s the price tag on replacing them?
College grads starting out may not own a home yet, but may rent a residence. Renters insurance covers your belongings whether at home or traveling. Renters insurance will also pay for an attorney and protect you in case someone gets injured while in your residence, or you damage neighboring apartments.
Health Insurance – Suppose while playing in a weekend softball tournament you slide into home plate and break your ankle requiring surgery and physical therapy. Do you have health insurance?
Following graduation, individuals may no longer be covered by a parent’s health insurance policy. Maybe you have not found a job, or your new employer has a waiting period before your health insurance takes effect. To bridge this gap, you can buy short term health insurance often for a month at a time for up to six months.
Life Insurance – Perhaps your parents cosigned for your new car and your student loans. For that you will be forever grateful. Remember, however, that they are liable to pay the loans back if you unexpectedly die. Do you really want that?
New grads may find a job with an employer that offers group term life insurance coverage; however, what happens to that policy should you leave that company? The time to buy additional life insurance is when you are young and have no medical problems.
Disability Insurance – This is a vital but often-overlooked insurance coverage. It provides income when a person is injured or disabled, whether on the job or off.
As you can see, at this stage in your life, there are many new responsibilities. Your independent insurance agent will be able to help you choose sensible coverage that won’t break the bank.
Jen Haracourt of Benz InsuranceBusinessInsurance|Hea
Kemner-Iott Benz Insurance
Ann Arbor, MI 48108