I know that insurance is important, but it seems like a huge hassle to me. Right now I don’t have any insurance, because I’m still in college, but I know that later on I’m going to have to insure stuff like my house. But I’ve got questions. Are all these different types of insurance, like homeowner’s insurance and life insurance, really necessary? How can I decide which sorts of insurance I personally need? How do I go about choosing an insurance policy–is it as annoying and full of paperwork as it seems like it would be?

 

Insurance is incredibly important. At its most basic, insurance offers us peace of mind and financial security by helping us pool our risk with others. If something goes wrong, the insurance policy will pay out to help cover the bill.

 

In practice, things can get a bit more complicated. For instance, health insurers have long realized that taking proactive and healthy steps is a more cost-effective way to stay healthy then waiting to treat illnesses and conditions that pop up more often when care is lax. So your health insurance policy probably makes it quite affordable for you to visit a primary care doctor for routine check-ups. And insurance policies have all sorts of different options: at its most basic, your car insurance may cover only collision damage to vehicles you get into a collision with, while more extensive policies may replace your vehicle if it is stolen or severely damaged.

 

Insurance is everywhere, and there’s a good chance that you’re not quite right in thinking you don’t have any. You most likely have health insurance, either through your parents or through your school. If you have a car, you must have car insurance. And your parents may have a homeowner’s insurance that protects your dorm room and the things inside it.

 

Once you’re on your own, you’ll certainly want to invest in some insurance policies. Here are some basic types you’ll want to consider:

 

• Health insurance: Health insurance is a must-have, because it makes routine healthcare more affordable while ensuring that you’ll have help if you fall victim to a serious illness or issue and need pricier help in the form of cancer care and other specialized treatments.

• Car insurance: You’re required by law to have at least basic coverage if you own and drive a vehicle. If you damage another vehicle on the road, your insurance will cover it–though you can expect your rates to go up if you’re seen as a risky investment by the insurance companies!

• Homeowners’ insurance and renters’ insurance: Homeowners’ insurance protects your home and the things inside of it, and may reach beyond that. Renters’ insurance is just for the things inside your space, of course, since you don’t own the property itself.

• Life insurance: Life insurance policies pay out when you pass away. While you won’t be around the see the benefits, this sort of insurance is important for those who want their families protected in the event of their untimely death.

There are other types of insurance too, of course: you’ll want business insurance if you start a business, you’ll need boat insurance if you own a boat, and you can take out specific policies on all sorts of pricey assets. Start with the basics, and speak to insurance brokers about what else you might need. Insurance isn’t hard to get these days: improvements in user portals and interfaces, say the developers behind one popular policyholder portal module, have made insurance sites more customer-friendly than ever. Getting insurance could be as easy as answering a short series of questions and entering payment information. So make insurance one of your priorities when you graduate–you’ll rest easier.

 

“Remember kids, I have life insurance.” — Adam Savage