Millennials and Insurance

There is a good chance that if you are reading this, one of your parents directed you to this blog via email. They probably added a subject line similar to “MUST READ!!!”, or “Check this out!”, or if you have parents like mine who think they are hilarious, maybe you got the “Great read for when I kick you to the CURB” subject line. Regardless of the route that brought you here, you did make it, and just like me you probably feel overwhelmed with the complexity of insurance.

In this series of short blog posts, I will cover the basics you should know and hopefully answer any questions you might have about insurance. If anything, you should know that you will have to buy insurance at some point in your life. Why not be informed about where your money is going and what your insurance plan is providing you?

First of all, what is insurance?

By definition insurance is, “A practice or arrangement by which a company or government agency provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium.”

Essentially, insurance is a way to cover expenses or help supply financial aid if anything bad were to happen to you, or anything you own.

How does it work?

If you decide to get insurance you may benefit the most from visiting an insurance agency in person rather than purchasing insurance online. Although buying insurance online is considered quick and easy, as a first time buyer you may want an agent present to find the right insurance for you and explain the aspects of your policy. Visiting an independent agency, such as Capitol Agency, will give you the most flexibility and act as a middle man to get your insurance plan set up. The company that you choose to be insured by will be the supplier of your funds when you are in need. There are two types of insurance agencies: independent and direct agencies.

Independent agents can give you quotes on your plan through multiple different insurance companies. So for example, Capitol Agency can compare the rates of five insurance companies and allow you to choose which plan and company to move forward with.

Direct agents can only give you quotes on your insurance plan through their own company. For example, a State Farm agent can only quote your insurance plans through State Farm. They cannot show you what your rate would be if you were to purchase through another insurance company, such as Geico, instead.

What types of insurance plans are there?

• Life insurance
• Auto insurance
• Renters insurance
• Boat/watercraft insurance
• Accident insurance
• Health insurance
• Property insurance
• Business insurance

The list can go on and on because you can get insurance for almost anything of value.

Watch for my next post where I’ll go over what can be covered by insurance and how a deductible works.

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Categories: Money Smart Kids , Safety and Security , Your Home