How can young people make sure they’re getting the most out of their insurance provider?
Do they even need insurance?
Here are my five top tips when it comes to young people and insurance.
1. It can happen to you.
When you are young, you think you are bulletproof. Sadly, that’s not the case. I know money can be tight, but I tell you – every financially successful person I know has a good insurance plan in place.
2. Car insurance: Shop around!
Car and health insurance is incredibly competitive. The car insurance that was cheap this year might be expensive next year, simply because that particular company had more than an average number of claims in the past 12 months. A lot of the time you can get premium reductions just by telling them you are going to move companies.
When you are young, you think you are bulletproof. Sadly, that’s not the case.
3. Health insurance: The earlier the better.
Get your health insurance cover before you are 30! For every year you wait after this, you pay an extra premium – so not only would you not be insured, when you get around to it you’ll pay more. Plus, if you are a high income earner and don’t have health insurance, you’ll pay an extra Medicare surcharge will which will be around as much as your premiums anyway, so it makes sense to get the cover you need.
4. Income protection: Worth considering.
You might think you’ll live forever, but there’s a very high chance you’ll be sick or have an accident along the way. That six inches of grey matter between your ears is the most valuable asset you have, so why don’t you have it insured?
5. Life insurance: Lock in premiums.
If you are young and healthy, life insurance is a cheap as chips. Make sure you lock in level premiums, instead of the usual stepped premiums (the latter increases each year as as you get older). You’ll pay a bit more at first, but over the years you will save thousands of dollars as you keep paying the same rate each year.