Life After College: Understanding Where Insurance Fits In
Across the country, college graduates are gearing up to embark on the next chapter of their lives – some are relocating, some are pursuing higher education, and others are beginning their careers. But one thing they all have in common is the need to navigate insurance, which is often unfamiliar (but exciting!) territory for recent college grads.
According to a survey completed by the National Association of Insurance Commissioners (NAIC), 54% of Gen Z respondents feel “overwhelmed or anxious” at “the thought of dealing with insurance,” and only about one in four could correctly identify “deductible” and “copay”.
How can we help young adults understand insurance to successfully navigate the next chapter of their lives – and adulthood? A good place to start is by providing the correct educational tools to help.
Below are a few tips from the Iowa Insurance Institute that can help recent college graduates successfully navigate the world of insurance.
- Understand the many types of insurance: Many different types of insurance help minimize risk, protecting yourself, your belongings, and your loved ones. Auto and home insurance are two of the most important – and confusing – to understand. The Iowa Insurance Division offers a helpful guide showcasing the difference between the types of insurance.
- Familiarize yourself with common insurance terms: The insurance industry is full of jargon. To make informed decisions, you must be able to understand keywords frequently thrown around. A helpful list can be found here. Every young adult should know what “deductible” and “copay” mean!
- Shop around based on your individualized needs: Every person has their own requirements for their insurance policies based on things like budget, assets, and more. To make sure you find the right one for you, shop around! Get quotes from multiple companies, and remember to account for reputation and reliability, not just low prices.
- Find a licensed insurance agent for your policies: Just like in college, having a mentor can make uncharted waters feel less overwhelming. A licensed insurance agent can act as your mentor to help you navigate the new world of insurance, but ensure they are licensed with the state of Iowa before trusting your livelihood with them.
Life after college is an exciting new chapter – and getting your insurance in order is a smart first step into the rest of your life. Follow these tips to start off on the right foot!
Sources:
National Association of Insurance Commissioners (NAIC)
Iowa Insurance Division – source A
Iowa Insurance Division – source B