If you were born between 1978 and 1999, you are classified as a millennial.
The millennial generation is regarded as one of the most financially conservative generations since they are careful when it comes to investing and saving. Therefore, it’s surprising to look at the fact that a vast majority of individuals between 18 and 39 are underinsured. Here are 8 types of insurance plans millennials should consider:
1 Life Insurance
Life insurance isn’t something that only the wealthy need. Depending on your particular situation, perhaps, you need it as well. In Australia, your debts get passed unto your children and spouse when you pass away. Life insurance policies can negate the need to transfer debts to a family member when you pass away. When it’s all said and done, if anyone depends on your income, it’s highly recommended that you get a life insurance policy that could cover the expenses of said love one for the first 6 months after your death.
2 Renter’s Insurance
Statistics demonstrate that most Australian millennials are taking much longer than other generations to purchase a home. Experts believe this delay is primarily based on tighter restrictions on lending and burdensome student loan payments. While some are spending time at their parent’s house, others are rolling the dice with the rental market. The problem with this is that many millennials are not ensuring that their belongings are protected.
In fact, a survey from an Australian renters insurance company demonstrated that as much as 55% of renters between the age of 22-37 did not have renter’s insurance. However, when you look at the fact that you can get coverage for as little as A$10, there’s no reason why you shouldn’t pay a small fee to protect your personal belongings.
3 Disability Insurance
One of the most overlooked types of insurance is disability insurance. Most millennials may not think they need this type of insurance because they believe they are too young. However, a serious illness or injury can derail your financial pursuits. Statistics concluded that 25% of all living individuals in their 20s would get disabled before they retired.
Therefore, while the concept of getting disability insurance may seem odd at first glance, it can save you from financial ruin if you happen to be a part of that 25% who will become disabled before retirement.
4 Car Insurance
When it comes to critical must-have insurance plans, car insurance Australia seems like a no-brainer, no matter what age bracket you belong to. But alas, car insurance is an area where many millennials are lacking. A finding showed that 35% of adults between 18 and 30 do not have any insurance on their vehicles. Experts believe that millennials do not want to deal with the expenses associated with a car insurance plan. However, the expenses related to an accident are significantly greater than those of a monthly premium.
5 Umbrella Insurance
Umbrella insurance can be best described as a personal liability kind of insurance that can be used with other kinds of insurance policies. It essentially provides additional coverage for areas that may go outside your underlying insurance scope. For instance, if you own a boat, an umbrella insurance policy can provide additional funds to cover where your boat’s liability insurance left off.
So, if your vehicle sustained damage and your insurance company paid out A$8,000 to cover A$10,000 in repair fees, umbrella insurance can help to provide that additional A$2000. We can consider the exact thing when it comes to rental properties. Umbrella insurance provides coverage beyond what a renters insurance policy would cover.
6 Travel Insurance
Many millennials who travel never consider the possibility of travel insurance. Travel insurance is provided as an additional add-on whenever you book a flight online. However, they tend to be especially expensive. Hence, it comes as no surprise why many people never get a travel insurance policy. Few people know that you can get a third party travel insurance provider who will provide better coverage at cheaper rates.
You can customize your coverage to cover things such as trip delays, trip cancellations, emergency medical services/evacuations and lost baggage. While it may be true that you don’t need to get a policy for every trip that you take within the country, it is a good idea for going outside the country.
7 Tuition Insurance
As the expenses associated with higher education continue to rise significantly, and statistics show that some people may leave school before getting a degree, this type of insurance is fundamental. A tuition insurance policy will refund you in part or full for the expenses you paid for tuition if you have to drop out due to family or medical reasons.