Now that you've left home and are working as an independent adult, it's time to get your affairs in order so you lay the foundation for a stable financial future. One thing you'll need to deal with is insurance. While you may hate paying for insurance every month, especially if you're enjoying earning a paycheck for the first time, insurance can save you from financial ruin. Here are some types of insurance you should consider buying once you've entered the working world and are responsible for your own affairs.
Health Insurance
Health insurance is important even if you never get sick. You never know when you'll get an illness or be in an accident, and hospital bills can force you into bankruptcy or be a cloud over your finances for years. Hopefully, your employer provides you with insurance. If not, you might have other options. You may be able to stay on your parent's plan a while longer or you might be able to get insurance through the Affordable Care Act. Your college alumni association, union, or other organization you belong to might provide basic health coverage as well. You can also buy a policy from an insurance agent, and if you're young and in good health, the premiums may be affordable, especially if you combine all your insurance policies with the same agent.
Vehicle Insurance
Insurance for your car, truck, or motorcycle is required by law in most states, so you don't want to go without it or let it lapse. Car insurance can be expensive, so you'll want to talk to an agent about the different types of coverage you need and how you can reduce the price. You can play around with the deductible to lower your payments. If you drive an older car, your insurance will be cheaper so that's something to keep in mind when you're ready to buy a new car once you've been working for a while.
Renter's Insurance
If you're buying a home already, then you know you need homeowner's insurance. You might not know that insurance is a good idea even if you rent. Renter's insurance provides coverage for damage and theft. If you have valuable electronics in your home and new furniture, you may want to invest in renter's insurance so they can be replaced if they're stolen.
Life Insurance
Life insurance may also be provided by your employer. If it is, you'll want to make sure it is adequate for your needs. Being young, life insurance is usually affordable and it can save your family from paying thousands of dollars for your funeral if you're killed in an accident. Also, if your parents have co-signed any loans for you, leaving them money in the form of a life insurance policy helps them pay off the debt rather than having to pay out of their pocket once you're gone.
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