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5 Types of Insurance Millennials Need For 2020

Being prepared is the best way to avoid panic. Being ready for anything will help you to stay calm, sum up the situation quickly, and proceed with more efficient, capable action.”

Young generations such as Millennials and Gen Z’ers brush off the thought of having insurance for some reason. It’s either they seem themselves as being fit as a fiddle or their income is modest enough to pay for their bare essentials; Thus, they are understandably cautious and hesitant when the subject of saving and investing comes around. This is one of many reasons why there are young adults who are underinsured. 

Having insurance may seem like an unnecessary expenditure if you have debts to pay or you’re in perfect health. However, like the line from the movie, “Life is like a box of chocolates, you never know what you’re going to get.” It’s important to have some sort of insurance for the unexpected surprises life throws your way.

The most needed and most popular insurance products in the US

  1. Health Insurance

A doctor consultation in the United States can be quite expensive. For an initial consultation, the cost ranges from $100 – $200 while specialist consultation fee is at $250 minimum. What’s more is that the average hospital stay charge costs $10,700, which most low-income and middle-income people cannot afford to pay, especially if they lack funds for emergency purposes.

With health insurance, Millennials and Gen Z’ers need not worry too much about unexpected hospital costs as your chosen health insurance company pays a portion of your medical bills. Some of the essential health benefits included in health plans in the U.S. are emergency services, outpatient care, hospitalization, laboratory tests, maternity, and newborn care among others.

  1. Auto Insurance

Car accidents are one of the most common personal injury accidents in the U.S. which could result in rollover collisions, single-vehicle collisions, rear-end collisions, side-impact collisions, and side-swipe collisions. These losses for the crashes could make you financially responsible, and without auto insurance, the expenses would be thousands. 

Through car insurance, property damage and bodily injury claims are covered; it is important to note that car insurance price is significantly lower as compared to the huge amount of money millennials and Gen Zers have to shell out in case of a car accident.

  1. Pet Insurance

To provide the best health care for pets, veterinary practices have changed over time. With the advancement of technology, equipment and facilities have been upgraded to the most modern version; however, this comes with a higher veterinary fee. By buying a traditional pet insurance plan, you have the assurance that in times of costly emergency veterinary treatment, surgeries, routine care, and/or orthopedic services, there is an insurance company to help you save money. The average pet health insurance cost which does not offer complete coverage is from $40 to $70 while others charge $100.

If you are looking for the most affordable plan at nothing more than $65 with the most comprehensive pet protection service, go for Eusoh, a community health sharing plan similar to a pet insurance company that reimburses wellness expenses and routine veterinary visits. With the help of Eusoh, you do not have to stress yourself out on the veterinary cost; rather, you can focus more on your pet’s health and wellness.

  1. Renter’s Insurance

While the landlord’s policy covers the building structure such as the foundation, roof, fixtures, furnaces, and walls, the renter’s property inside the apartment unit is insured by renter’s insurance policy. In the event of natural disaster, fire, and theft, it goes without saying that the renter’s possessions are in a vulnerable situation. Buying new clothing, furniture, appliances, and electronics would be very expensive, especially for millennials and Gen Zers who are just starting out with their career. 

This is where renters insurance comes into the picture. The policy takes charge of the cost to repair or replace damaged or lost items. Tenant insurance also includes repairs for someone else’s damaged property as well as injured visitor’s medical bills if the renter is responsible for the harm incurred.

  1. Travel Insurance

Going on an international trip is truly beautiful as there are many striking places waiting to be explored not to mention the different cultures and lessons you will discover, but it comes at a cost. Foreign travelers are more vulnerable to thieves; accidents may happen; political turmoil and natural disasters are inevitable; trips may have to be canceled. 

Without the existence of travel insurance, dealing with an emergency situation would be expensive to handle. For millennials and Gen Zers, they may give it a second thought about whether to buy travel insurance, but doing so for global trips would give you peace of mind.

The Bottom Line

Purchasing insurance may seem to be a big investment for all generations, and the younger generations are not open to putting their money on a plan which does not yield immediate return, but long term planning should be the major goal of millennials and Gen Zers. 

Unfortunate events are inevitable but with the right insurance, worrying about major money troubles would be the last thing on your mind. Insurance reimburses claims through cash as a single payment or through monthly payouts; thus, insurance is known as a financial security net. 

Photo by Guilherme Stecanella on Unsplash

Rising Health Costs Are Coming Your Way

*This article concerning health costs came from the New York Times. It was written by David Leonhart and it was published on July 19, 2019. Link

My health care is a benefit. Your health care is a cost.

That widespread attitude has long hurt political efforts to hold down medical costs. When people hear that the government (or an insurance company or a hospital) is taking steps to reduce health care spending, they get nervous about being denied medical care.

You can probably see the problem: Someone has to pay for medical care. And to some extent, we all pay for each other’s care, through both taxes and private insurance. Ultimately, an unwillingness to say no to health care spending leads to higher costs for everyone.

That’s one reason that Americans have the world’s highest medical costs. (Another reason is that doctors, drug companies and other parts of the American health care industry make a lot of money.) We struggle to say no even to health care that doesn’t make us healthier. Cardiologyprostate care and obstetrics are three examples, among many, of fields where high-cost care often brings no benefit.

All of which brings me to the sad story of the Cadillac tax.

During the long debate over the Affordable Care Act a decade ago, the Obama administration was one of the only forces for fiscal conservatism — that is, trying to hold down health care spending. Congressional Republicans could have pushed for cost-saving measures, but instead they just opposed any effort to insure the uninsured. Many congressional Democrats, especially in the House, had no interest in policies to hold down spending.

Now that the Obama administration is gone, an important part of the health care law seems likely to die: the Cadillac tax. Had it gone into effect, the tax would have applied to expensive insurance plans — that is, those with relatively few restrictions — as a way of encouraging companies and workers to use more efficient plans. A few years ago, though, Congress delayed it, and on Wednesday the House voted to repeal it. The Senate seems likely to follow. Being in favor of unconstrained health spending is politically easy, even though it’s bad policy.

Labor unions are probably the best example of the perverse politics of medical spending. Unions have always opposed the Cadillac tax, out of fear that it will deny needed medical care to their members. As a result, the unions have ended up effectively pushing for expensive health care plans that quietly pinch their members’ paychecks.

The sharp rise of health spending in recent decades is one reason that wage increases have been so weak. As Paul N. Van de Water, a health care expert at the Center on Budget and Policy Priorities, told Abby Goodnough of The Times, the tax was “one of the A.C.A.’s most important cost-containment measures” and could have led to pay increases.

For more …

“Rather than killing or delaying the Cadillac tax, Democrats should be trying to make it operational. The tax would raise revenue, lower costs, increase the efficiency of the tax code and give the Obamacare individual market its best chance at success,” Karl W. Smith wrote for Bloomberg Opinion. “Instead, Democrats have set up that market for more turmoil.”

Sarah Kliff, then of Vox, explained in 2015 how the threat of the Cadillac tax was already holding down health costs. “Opposition is getting fiercer because the tax is working,” she wrote.

The Urban Institute has published a research paper with suggestions for improving the Cadillac tax rather than abolishing it.

For the other side of the argument, see Janet Trautwein, who works at an insurance industry trade group, or Stan Dorn, a consumer advocate. Core to the case against the tax is the idea that wasteful health care is not a meaningful contributor to overall costs.