Insurance 101

Young adults often avoid buying insurance because they don’t understand it, don’t feel they need it or decide that they can’t afford it. This is a pretty common sentiment for many who have limited experience with insurance. Moving out of the home for the first time means that you have to take on adult responsibilities and examine your needs for insuring and protecting the safety of your assets.

 

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Insurance Tips for New Grads

  • When you are assessing a job offer you might want to think about the total compensation rather than just the salary. It may actually be better (and cost effective) to take a lower paying job with benefits than one that does not offer such extra’s.
  • If you take the higher salary, figure out how you much insurance will cost, how you will meet these needs, and whether you can close the gaps before you sign the contract.
  • If you are in a relationship, you could talk to your partner about being added to their plan.
  • Check into offers of insurance by McMaster’s Alumni Association. You may receive discounted rates for home, auto, life and other coverages.
  • There are different types of life insurance – whole life and term insurance. They both have different advantages and disadvantages, before making decisions make sure you understand all the options. A consultation with an insurance broker is recommended.
  • Insurance can be difficult to get and if you are applying for insurance on your own (not with an employer) you may need to get a physical examination and provide a detailed medical history. You may not get approved if you have a pre-existing condition.
  • Consider long term disability as a necessary insurance to keep your dependents and yourself in reasonable financial shape. This is particularly important if you are considering self-employment as this coverage is essential.

For general insurance information, visit: www.fsco.gov.on.ca