Everyone knows that teaching your children the value of a dollar is essential. But how about the value of insurance? Do young adults understand the different types of insurances and why they are important? Helping your child understand insurance can help them plan better for their future.
As your children enter adulthood it is important to help them plan for their financial futures. Setting them up with a good understanding of how insurance works and what benefits it provides can save them money and heartache in the future.
When insurance is purchased, a policy is issued. The policy is a legal contract between the insurance provider and the purchaser. When a loss is suffered by the purchaser, they file a claim. Payment to compensate the purchaser for the loss is made according to the terms of the policy. Insurance is a financial safety net that helps you recover in the event of an accident or loss.
Knowing that you and your assets are covered by insurance helps you to live with fewer worries. Receiving financial assistance after a loss will help you recover quicker. That promise can help you rebuild your home, repair your car, or assure that your family will be taken care of financially if the unthinkable were to happen to you.
If you have a child that is the primary driver of a car you own, you may want to consider transferring the car out of your name and into theirs. Especially if they no longer live with you. This will limit your liability. Personal car insurance covers only the people who live in your house, related by blood, marriage, or adoption. If your young adult child lives elsewhere, they would no longer be covered and would be on the hook for any damage they cause. If the car is still in your name, an injured victim could sue you even though you were not driving or even involved in the accident, simply because you are the owner. For more information about auto insurance, check out: www.rogersgray.com/personal-insurance-ma/auto-insurance/
Home and Renter’s Insurance
Homeowners and rental insurance are some of the most common and important types of insurance for your child to understand. These coverages protect where they live and the possessions within it. It is important they know that if they rent an apartment, their landlord’s insurance policy does not cover any of their possessions. If there is a break-in or fire and a laptop, video game system, and cell phone, are all stolen or destroyed, without insurance, they would have to pay the cost of replacing them out of their own pocket. Renter’s policies tend to be inexpensive, around the same monthly payment as some popular streaming services.
Another element of homeowners insurance is liability insurance. Liability insurance would help cover medical bills if someone on their property is injured. Accidents happen all the time, make sure they are covered incase the next one happens on their property.
Having a collection is a fun and rewarding hobby. Whether its vintage records, baseball cards, or comic books, there is often a lot of money invested in building and maintaining a collection. Make sure there is a rider for any especially valuable pieces in their collection as a part of their renters or homeowners policy. For more information about home and renter’s policies, visit: www.rogersgray.com/personal-insurance-ma/homeowners-insurance/
As you can see the different types of insurance that can help protect you from risk and put your mind at ease. If you would like to learn more about different types of coverages available or to start a quote today, visit: www.rogersgray.com/quote.