Missed the college course that covered exactly what is needed to know about insurance plans? So did everybody else.
Health, life, auto, pet and homeowners are some of the insurance plans college students are expected to know about after graduation.
However, many students do not know anything about these plans. They simply know that it is something they will need someday.
It is important that college students start thinking about these plans sooner, rather than later. For those who know little to nothing about insurance and the plans offered, the best place to start is to get the basic facts.
Kimberly Beck graduated from Cabrini College in 1997. In her senior year, she did not give much thought to the health insurance plan she knew she was going to need after graduation.
“Insurance has a tremendous impact on your overall financial health. Students need to understand it before leaving college, moving and taking a new job,” Beck said.
Beck is currently the director of thought leadership and education at BlackRock, an investment management corporation.
Beck recommends college seniors who are considering job offers pay extra attention to the benefits offered.
“Look carefully into what you need to pay into a plan, and factor that cost into the overall salary you negotiate,” Beck said.
Many students do not understand the various plans that may be available. It is very important that students understand all of their options, especially for those who may need to prepare to buy their own coverage.
The Affordable Care Act (ACA), also known as Obamacare, provides options for health coverage.
Under the Affordable Care Act, young adults can stay on their parents’ health plan until the age of 26. If the parent is covered by the Pennsylvania employer’s group plan, there is also an option to stay on that plan through age 29.
Even with plans available, young people remain the least insured age group in the United States.
So, what are the consequences of going uninsured?
With the cost of medical care so high, those who chose to go uninsured are at great financial risk if an unexpected medical event occurred. Although no one plans or wants to need medical help, it is important that there is a plan in place.
Purchasing a life insurance policy is another thing for college students to start thinking about.
Mike Kazanjian is a 2003 graduate of Cabrini College. He now works as the vice president of marketing at the Lincoln Financial Group.
Kazanjian believes life insurance is almost always a reactionary purchase triggered by a life event, such as getting married or having children.
“Although these are not events college students are often thinking about, it doesn’t mean you have to be married or have children to purchase a policy,” Kazanjian said. “The younger you are, the cheaper life insurance is to purchase.”
Kazanjian also believes the term “insurance” should not be limited to life insurance.
“The first thing any graduate should do when they start their first job is enroll in their company’s retirement plan,” said Kazanjian. “Think of this as insuring your future lifestyle. Every single day counts, and today’s graduates can count on a retirement lasting 30-40 years.”
Recent Cabrini graduates have given insurance plans some thought.
Joanne Schrank graduated in May 2015 and is now a full time elementary school teacher and living on her own.
Working full time and living on her own is exciting, but Schrank still has to give a lot of thought about getting her own insurance plan.
“My dad works for an insurance company so he and I talk a lot about the pros and cons and which plan will work best for me,” Schrank said. “I’m nervous about eventually getting my own plan because it costs a lot and takes a lot out of your paychecks.”
Schrank recommends college seniors start talking to their parents and family members for advice about the best plan for them. This is especially important for those who want to start working and living on their own immediately after graduation.
Thinking about all of the different insurance plans can be stressful for students after they graduate.
It is important that college students get educated before grabbing that diploma.
