As graduation season approaches, many young adults are preparing to embark on a new chapter of their lives as college students. While this transition is exciting, it’s also essential for students and their families to consider how insurance factors into their plans. In this blog post, we’ll explore some key considerations for college-bound students.
Health Insurance:
One of the most crucial insurance considerations for college-bound students is health insurance. Many students may still be covered under their parents’ health insurance plans until they reach a certain age or graduate from college. However, it’s essential to review the terms of the policy to ensure that coverage extends to the location of the college or university. Alternatively, students may need to enroll in a student health insurance plan offered by their school.
Renter’s Insurance:
For students living in off-campus housing, renter’s insurance is essential. Renter’s insurance provides coverage for personal belongings in the event of theft, fire, or other covered perils. Even if students are sharing an apartment or house with roommates, each student should consider purchasing their own renter’s insurance policy to protect their possessions.
Auto Insurance:
Students who plan to take a car with them to college should review their auto insurance policies. Factors such as changes in location, vehicle usage, and driving patterns may affect insurance premiums. Additionally, students who leave their cars at home while attending college may qualify for a discount on their auto insurance policy.
Life Insurance:
While life insurance may not be a top priority for college-bound students, it’s worth considering, especially if students have dependents or co-signers on loans. Life insurance can provide financial protection for loved ones in the event of the student’s untimely death, helping to cover expenses such as funeral costs, outstanding debts, and ongoing living expenses. Life insurance can also be an untraditional “gift” for graduates, as buying a policy for them would lock in very low rates for the next 30 years, especially since many would not have health issues at such a young age. Additionally, the term may include a Guaranteed Insurability Rider that would guarantee the option to purchase additional coverage at different ages throughout the term, providing the 18-year-old the option to purchase more coverage at age 36, for example, without having to go through underwriting.
Travel Insurance:
For students planning to study abroad or participate in international programs, travel insurance is essential. Travel insurance can provide coverage for medical emergencies, trip cancellations, lost luggage, and other unexpected events while abroad. It’s crucial to research and purchase a comprehensive travel insurance policy that meets the student’s needs and destination requirements.
In conclusion, graduation season is an exciting time for college-bound students, but it’s essential to consider insurance needs as part of the transition. From health insurance to renter’s insurance and beyond, understanding and securing the right insurance coverage can provide peace of mind and financial protection for students and their families alike.
