SINGLE
You are part of the work force and out on your own. Establishing a solid
financial foundation should be a priority, including insurance in the
mix. It's important to understand what affects the cost and availability
of insurance. If you have accidents, insurance will increase in cost.
Financial instability, getting smothered by credit card debt, is
frequently a predictor of future insurance losses. As a result, an
insurance company may see additional risk, making it more difficult to
get coverage at the best possible price. Conversely, if we take care of
ourselves and protect what we own, insurers will see good insurance
risks and are more likely to compete for your business.
AUTO
What you pay for auto insurance depends on several factors: prior
claims; driving record, including speeding and other traffic citations
in recent years; and the kind of car, how many miles and where you
drive. For example, people who generally drive to and from work in or
near a major city will tend to pay more for auto insurance than drivers
who live in rural areas, have short commutes and primarily use their
cars on weekends for pleasure travel. A car that is popular with thieves
or has expensive repair costs will cost more to insure. You can lower
your insurance premium by raising the deductible, installing anti-theft
devices, and dropping collision coverage if it's an older car.
HOME
People who rent their home often make the mistake of thinking that the
landlord's insurance covers their possessions in case of a fire or other
catastrophe. Not true, you need your own insurance. Relatively
inexpensive, renters insurance protects the things that you own. It
provides liability coverage, protection from lawsuits resulting from
harm that you, your pets or your family cause to other persons or damage
to their property. Renters insurance also helps you establish a good
insurance track record, or loss history. If you show that you are a
responsible insurance risk, you'll have no trouble getting insurance
when you eventually buy your own place.
If you are living in a condo or coop, you depend on two insurance
polices for protection: your own coverage and the insurance purchased by
the condominium or co-op board for the common areas of the property that
you share with the other owners, like the roof, basement, elevator,
boiler and sidewalks. The condo or co-op association may be responsible
only for insuring a unit up to its bare walls, floor and ceiling. The
owner may have to insure kitchen cabinets, built-in-appliances,
plumbing, wiring, bathroom fixtures and so on. Read the association's
bylaws and/or proprietary lease to better understand where the
association's responsibility ends and yours begin.
If you're buying a home, and have a mortgage, in most cases you will
need to purchase homeowners insurance. The cost will vary according to
the size and construction of the home; where it is (proximity to the
coast or other natural hazards, e.g. fault line, wildfire zone); fire
safety features; anti-theft devices; and the property's loss history.
Insure your home for the cost of rebuilding it, not the market price.
And make certain that the value of your insurance policy is keeping up
with increases in local building costs.
LIFE
Your parents probably have life insurance which will be part of their
estate. But now that you are on your own, you have to think about your
own insurance needs. When you are young, your life expectancy is high,
which means the cost of life insurance is low. Life insurance becomes
increasingly important if you have others who depend on you, including
aging parents.
HEALTH
Once you are out of school or older than 23, your parents' health plan
won't cover you. As you sort through job prospects, it's tempting to go
for the opportunity that puts the most dollars in your pocket. Health
coverage is perhaps the most important job-related benefit you can get.
Many companies have coverage through a managed-care plan, which means
that many decisions, including which physicians are included in the
network, are made by the healthcare provider. Others have more flexible
plans that allow their employees to choose their physicians. In both
cases, the employee is responsible for some co-payments which help keep
costs under control.
DISABILITY
When we are young, we feel indestructible. In fact, at this stage, we
are four times more likely to be disabled than die. Many employers offer
an option of disability coverage, which provides for lost income if you
are injured as a result of non-work activities and unable to work. Most
large businesses offer disability coverage. Smaller businesses may not.
If the injury is work-related, then workers compensation coverage
applies.
LONG-TERM CARE
The good news is we are living longer. The challenge is how we as a
society will meet the expanded need for care for an aging population. In
many cases, the immediate question is how to best care for aging
parents. Increasingly, late in life, children serve as guardians for
their parents. There are many options for custodial care, ranging from
in-house care to nursing homes. As a general rule, for everyone in your
family, the earlier you consider buying long-term care coverage, the
cheaper it will be.
FINANCIAL PLANNING
You may not be making a lot of money, but it's probably more than you've
had before. You have an apartment to furnish, a wardrobe to build and
perhaps student loans to pay off. It's also important to save money.
Most financial experts emphasize that, even if you start small, becoming
a saver or investor earlier in life and keeping it up during your peak
earning years is very important. Put some money away regularly, even if
it is only a small amount. Treat it as a bill and pay yourself along
with your other obligations. This can be a rainy day fund or be for a
specific purpose, such as a down payment on a home or car.
If your employer offers a 401(k) at work with matching funds, sign up
for the maximum if you can. It's "free money."
At this point, it's also important to know what not to do. We live in a
"credit-card society" and are bombarded with advertising that suggests
we can have it all right now - the clothes, the car and the fast lane.
It sounds old-fashioned, but living within your means is important.
Maintaining a good credit rating will help you get the best rate when
you apply for a home or car loan. It can help you get a better job or
apartment. It can even save you money on your insurance.
With Permission © III - ALL RIGHTS RESERVED
Brier Payne Meade, Topeka – (785) 233-1717
Brier Payne Meade, Kansas City – (913) 402-9576
Get Driving Direction To Our Locations
|
Life Stages Insurance Need .....
|
