Life Lessons: Insurance Needs When You Are No Longer a Dependent

A major milestone for any young adult is losing dependent status from his parents. A literal rite of passage, it's now up to you to setup protections in your life. This article looks at the protections and insurances every adult beginning their life needs for success.

Insurance is meant as coverage when things go wrong. You wreck your car, you get sick, or your apartment burns down. Insurance is primarily calculated by the likelihood you will need it. Insurance companies collect premiums, and they use this money for interest gaining business activities, and pay out money to customers as needed. Bad insurance companies use unreasonable excuses to deny coverage; you must read all terms and paperwork carefully!

One of the things you run into with insurance companies are deductibles and copays. A deductible or co pay is the amount you must pay BEFORE the insurance company offers any coverage. For example, a car repair that costs $800, but you have a $1,000 deductible means you will foot the entire bill yourself. If the car repair was $1,800, the insurance company would only pay $800 of the repair.

ALWAYS KEEP THE AMOUNT OF YOUR DEDUCTIBLES AVAILABLE IN SHORT TERM SAVINGS.

Insurance Coverage Every Adult Needs

Car Insurance

This is now a requirement in nearly every state when you register a vehicle for license plate tags. Failure to provide evidence of appropriate insurance results in a penalty fee for being an uninsured motorist. Same charge can occur if you are pulled over and do not have your insurance card with you. Car insurance has many types of products including comprehensive coverage, liability insurance, and road side assistance. A poor driving record, of accidents or tickets, can prevent you from car insurance with a reputable and affordable company.

Medical Insurance and Dental Insurance

Most people secure medical insurance and dental insurance as benefits at work. However, working in a small company, or at part-time status may make health insurance unavailable. Anyone can purchase an individual plan from a medical insurance or dental insurance company. The benefits of buying as a group, which is how your company does it, are that the insurance companies generally offer lower rates in exchange for the large number of captive customers.

It is important you take note of caps when it comes to medical insurance and dental insurance. Once you reach your cap of total coverage in a year, you are no longer insured until the next calendar year. Also, just as a poor driving record impacts your car insurance rates, poor health decisions like drinking and smoking also raise your health insurance rates.

Renter's Insurance

You have stuff. What happens if there is a fire or theft and you lose your stuff? How will you afford to replace it? This is why renter's insurance exists. Many companies offer renter's insurance to cover the physical possessions in your apartment or car. Your landlord's insurance for the property doesn't cover your possessions. For affordable renter's insurance rates, see if your car insurance company also offers renter's insurance. By purchasing more than one insurance product with a company, customers usually receive a discount.

Life Insurance

Life insurance is an optional insurance, not one you technically benefit from, after all you are dead. Life insurance provides money based on your policy to beneficiaries you designate after your death. Some life insurance policies also pay out in the event of disability, such as the loss of a limb or eye. Unless you have children or a spouse, your life insurance policy should only offer funds to perhaps cover the cost of your funeral.

There are other types of insurances for when you purchase a home, or another type of vehicle such as a boat. Insurance is important to have for anything you would want to repair or replace if anything happens and the cost of that repair or replacement exceeds your savings. This includes your own body, so don't skimp on health insurance or life insurance.

Life Lessons: Birth Certificate, Social Security Card, Driver's License, and Insurance Cards Are Important Documents You Need After 18

After high school, it's now up to you to manage your life. There are certain documents that your parents should have, but now need to be in your possession. Documents such as your birth certificate, Social Security card, driver's license, and insurance cards are needed for everything from securing a first apartment to becoming legally employed.

Keep your birth certificate, social security card, and copies of your driver's license and insurance information in a safe place. Other than your insurance cards and driver's licenses, the originals should never be carried daily in your wallet or purse. A safe place is a folder in a filing box, in a marked envelope in a desk, or some other stationary location with a small level of protection against bending and wear. Otherwise, you are just inviting identity theft.
       

Birth Certificate

A birth certificate is a vital piece of information; it proves your citizenship. With a government-issued photo I.D., a birth certificate acts as a second form of identification for passports, marriage licenses, voter registration, and many other official actions. States issue birth certificates, and each looks slightly different. If your parents cannot locate your birth certificate, request a copy from your state's Vital Records department. If you were born in a hospital, you have a birth certificate on file. In the remote situation you do not have a birth certificate on file with your state of birth, the Vital Records department can also direct you to the procedure of creating a certificate of live birth. http://vitalrec.com/birthcertificates/

Social Security Card

Memorize your social security number (SSN). Originally, this number was set up by the U.S. Government strictly for retirement purposes. Because it is unique to every U.S. citizen, the uses of the social security number soared. Now, you use your social security number to verify your identity in banking, on credit applications, for taxes, military service, and businesses can request your SSN to create a unique identifier for your account.

Second to knowing your social security number forwards, backwards, and in your sleep, is actually possessing the card. A social security card is a thin paper card that you may not laminate. There are very few occasions you need to produce the actual card, so it does no good to carry it around daily. If your social security card is lost, visit http://www.ssa.gov/ssnumber/ for help.

   

Driver's License/ State I.D.

This is the one vital piece of identification that breaks the rules: carry it with you ALWAYS. If you go running, find someplace it can tuck into. A driver's license is a universal form of identification anywhere you go in the United States. Like birth certificates, driver's licenses are issued by each state and look different. If you can't qualify for a driver's license, obtain a state I.D. card. They are also issued at your local DMV. Both state I.D. cards and driver's licenses require the above official documentation to obtain. For replacement cards, visit your local DMV http://www.dmv-department-of-motor-vehicles.com/.

Insurance Cards

The two primary forms of insurance are car and medical insurance. You need your car insurance information anytime you are in your vehicle. In the event of an accident, or pull over, you will need to share this information with authorities.

Medical insurance cards are important for you to see a doctor, to fill a prescription, or in the event of an emergency. Medical insurance cards are improving everyday, some insurers offer cards that include medical history information for the patient. This includes information such as existing conditions, allergies, and previous medical problems. As emergency medicine improves in technology, EMTs and doctors can scan these medical insurance cards for quick patient history, even if the patient is unconscious.

Contact your insurance provider for new copies of your insurance cards if you do not have them, or if your parents would like to hold onto to a copy as well.