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Personal Insurance for Young Adults: Cutting Through the Jargon

Personal Insurance for Young Adults: Cutting Through the Jargon

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Young adults often have a limited understanding of the ins and outs of personal insurance. This isn’t a knock on younger generations, but because insurance isn’t something we’re taught or usually even think about until it’s needed. This leaves many young adults in the dark when it’s time to get insurance.

In this post, we’re going to start with the basics. Our goal is to cut through the insurance jargon and help provide a basic understanding of insurance concepts.

What are assets?

Assets are property you own that hold value. Some of the most common insurable assets would be your vehicle, home, electronics, art, and collections.

What is a risk?

A risk is the degree of financial loss associated with your assets or lifestyle. If you own a car, it’s a risk because you could get into an accident and need to pay for repairs or medical bills if you injure someone else.

What is a loss event?

A loss event stems from theft/vandalism, damage, a disaster, etc. It is an event or situation that results in financial damage to assets.

What is personal insurance?

Personal insurance is the foundation needed to help protect your assets. In short, it helps to protect your financial future by effectively managing your risks to prevent, transfer, or mitigate loss.

What is a claim?

When a loss occurs, usually the first step is to make an insurance claim. A claim is a request you make to the insurance carrier to pay for a loss. After that, it is reviewed by your insurance carrier. The loss must be covered by your policy in order to be considered for payment.

What is an insurance premium?

If you experience a loss, you’d be fully financially responsible without insurance. When you do have insurance, the company absorbs your risk and covers costs associated with losses and damages. In exchange, you pay them a premium. A premium is the amount of money to ensure you have the proper coverage you need.

Making Personal Insurance for Young Adults a Priority

When you’re young, you can sometimes feel invincible. But, running around without insurance is like tempting fate. It doesn’t increase the odds of something happening, but it can certainly increase the likelihood that you may wind up paying if a loss occurs. In our resource, Decode Your Way Through Insurance Jargon: A Guide to Take Young Adults from Insurance Inexperienced to Protected Pro, we go into a lot more detail about the terms above. We also delve into reasons to make insurance a priority, coverage options, and more! Check it out here:

Burnham WGB’s Personal Insurance Advisors

We hope this information and resource is helpful for your young adult. When you want to manage your financial risks and protect your assets, our experienced Personal Risk Advisors can provide personalized guidance to help you understand the different types of insurance coverage, processes, and requirements. Contact us today to help protect your now and future.