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Insurance Tips for Graduating Students

Across the country students have already graduated while others are still anxiously waiting to put on their caps and gowns. After graduation, for many students this means preparing for college while others are diving right into the workforce or into a work apprenticeship. Regardless the road graduating students choose to take this year, here are some important insurance steps to review after graduation.

1. Review your auto insurance policy. Many students choose to leave a vehicle behind when heading off to college which may qualify them for a student-away discount offered by many insurance carriers. The student-away discount requires a child be at least 100 miles away at college without a vehicle. On the other hand, some students will be taking their car with them to college. No matter what decision your student takes, it is a good time to review the liability limits, auto coverages, and deductibles for them. Do not forget to contact your independent agent or insurance company about your student being away at college, which vehicle they will be taking, and any changes it would make to your auto insurance.

2. Consider renter’s insurance. Today, students have several options to choose from besides the choice to dorm on campus. Many students are choosing to sign a lease for an apartment or a home nearby their college. Buying renters insurance for your child will help provide personal property coverage against loss to their personal belongings such as clothes, electronics, small appliances, etc. Another coverage that comes with renter’s insurance is liability coverage which provides protection for your child if their actions cause injury to another person or property.

3. Life Insurance. College students may take on student loans and a lot of debt. If parents choose to co-sign private loans for their child that debt may become a burden if your child should pass away while in college. Having life insurance for your student will help relieve that burden. Some college students are choosing to get married while in college or may become engaged. This new life event can come with new and more shared financial responsibility. Getting life insurance when married while in college will take away the financial stress that falls on the surviving spouse such as bills and private school loans. For young adults having life insurance while in college is more affordable than most people think, because of a better health history the rates are lower compared to older adults. Obtaining a policy later in life will be more expensive due to a higher issue age and any potential medical conditions that develop before that time will make the policy more expensive or possibly make them ineligible for a new policy completely.

4. Review Health Insurance. Some employers may allow parents to keep their adult child on their family’s health insurance plan until the child turns a specific age. Make sure to check with your family’s health insurance company to see if your student will still be covered while they are away at college. Call your health insurance company and find out what is covered when you are out of network. You student should have copies of relevant health insurance cards and know how to obtain any required approvals before seeking treatment when away at college. If your student is no longer eligible under a parent’s health insurance, he or she may consider getting a student health plan or an individual health policy. Talk to your independent agent and find out what health options, coverages and rates are available for your student.

** Contact Paroubek Insurance and learn more about preparing your student for the road after graduation and the impact it will make to your insurance. Sources: https://oci.wi.gov/Documents/Consumers/PI-215.pdf https://www.thesilverlining.com/westbendcares/blog/insurance-tips-for-new-college-graduates

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