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Insurance policies a millennial couple should have

16th June 2020 Print

Millennial couples have a lot of time and energy while saving for retirement and paying their loans. However, most of them fail to pay enough attention to the insurance policies that they might need. There are several reasons that explain why millennials do not get insurance policies early in life today. Top among them is the fact that they tend to hold off on some of the traditional milestones in life that often warranted people to buy insurance policies. Nevertheless, millennials, whether married or not, will need to buy insurance policies at some point in their lives.

Buying an insurance policy is not an easy task. It needs a lot of research and an understanding of what the benefits are. This is basically trusting the insurer with money that you have worked hard for. The insurance policies, as well as the insurance company that one chooses, play a vital role in securing themselves and their families a stable financial future. It is therefore important for you to make the right decision when choosing the right policies and the insurer for your family. If you need help while at it, you can compare insurance online at PolicyScout to find the right policies to fit your life.

There are a number of insurance policies that a millennial couple should have. They include;

1. Life Insurance

This is a topic most millennials are not excited to discuss since they are young and at the peak of their lives. However, life insurance is one of the most important insurance covers for young people. For example, the cost of a funeral is very high today, which is a burden for many people. Regardless of how much one earns, it is important for millennial couples to about life insurance for both of them so that costs that would be left to one partner in the case of death are addressed.

In situations where one of you has a life insurance cover from their employer, it is important to get another independent policy that does not depend on the status of your employment. Most life insurance providers advise that it is easier to secure lower life insurance coverage premiums while you are still young and healthier.

2. Health Insurance

The cost of medical treatment is very high today all over the world. This, then, means that sickness or maybe an accident involving a family member could be financially straining for a young family. It is therefore important for millennial couples to make sure that they have a health insurance cover. If, for instance, the couple had separate health insurance covers offered by their employer before getting married, one of the partners should add their spouse in their coverage under the group insurance provided by their employer. However, this should not be enough as one of the partners might lose their job. Thus, the couple should also have a separate health policy outside to cover for any job loss. Finally, millennial couples should also check if their health insurance cover offers maternity coverage, especially for those that are planning to have a child in the next few years.

3. Disability Insurance

Disability insurance is important when it comes to covering a millennial couple with the income of the concerned partner if they are not able to work due to an injury or serious illness that might lead to disability. Millennial couples should consider having a disability insurance cover even if they do not believe in life insurance. The chances of one, or even both the partners in marriage getting injured or seriously disabled are higher than death, making disability insurance quite important. The disabled person will not be able to generate income but will still have living expenses, bringing a financial burden to the other person in situations where they did not have a disability insurance cover.

4. Renter’s or Homeowner’s Insurance 

A bigger percentage of millennial couples live in urban areas compared to older generation couples. A lot of things happen in cities that most of the time leads to loss of or damage to property. This makes it very important for a millennial couple that lives together to get a shared insurance policy that covers all their possessions. Those that have purchased a house together will need to have a homeowner’s insurance policy to cover their home and possessions. Millennial couples that are renting a house are advised to share a policy that covers all their collective possessions instead of purchasing two different renter’s policies.

5. Auto Insurance

Millennial couples are often regular users of each other’s car. This makes it very important for the partners to add each other to their respective auto insurance policies as permitted drivers. This will not have a significant difference in the rates on the cars as long as the added driver has a good driving record. However, this might vary with most insurance companies if the added driver has a history of car accidents or maybe has a teenager who might be using the car. Nonetheless, millennial couple with such a driver can limit the costs of auto insurance by limiting the driving privileges of such drivers to cars with the least value.

It is important for millennial couples to look at their combined assets and discuss their future plans to determine the insurance policies they need. This is vital in making sure that the couple can achieve their goals while at the same time protecting everything that is important to them.