Insurance Basics for Students
When you arrive at college for the first time, there are always plenty of things you have to take care of. To make your college journey pleasant and stress-free, you need to buy the required textbooks, notebooks, and appliances. You also need to rent housing or move into a dorm room. And you may even need to buy a car or some other kind of transport. When you finally have it all, it might feel like you are all set for college. Yet, there might be something you’ve lost out of sight.
One thing that students often overlook is insurance. Getting insurance is something that most students typically don’t have on their top priorities list. Nevertheless, it is something every young adult needs to protect themselves from major financial setbacks.
Want to learn more? In this article, a writer from EssayService, a trusted platform engaged in writing papers for money, and an expert in finance and actuary, is going to guide you through the insurance basics that all college students must know about. Let’s dive in!
Getting Clear on the Basic Terms
So, what does the term insurance mean in the first place? According to the general definition, Insurance is a form of risk management that protects you from financial loss.
Insurance is provided by an Insurer – an entity (company) that takes responsibility for covering your expenses in the case of an accident.
The process of obtaining insurance is carried out by signing a special contract between the insurer and the customer. This contract is called an Insurance Policy. And the person who holds it (you) is called the Policyholder.
There are also a few other basic definitions a student needs to know. First of all, there is the term “Premium,” which is the overall cost of the selected insurance plan. This cost is what directly affects the coverage you receive from the insurer. In a nutshell, the higher the premium of your plan, the larger amount of money you can get in the case of an accident and, respectively, the less you will have to pay out of your own pocket.
Then, there is also a Deductible, which is a fixed amount of money a policyholder must pay to an insurer before the latter one can start making any payments towards expenses covered in an insurance plan.
These are the basic insurance-related terms you need to know to figure out how everything works. If you are reading this guide in order to write a paper on this topic, don’t forget that there is always a possibility to ask professional essay writers to do my homework online. But we suggest all students study this matter in any case. After all, insurance is basically your financial safety net that helps deal with and recover from losses. So, don’t hesitate to take some time to figure everything out!
Why Do Students Need Insurance?
After getting clear on the main terms that are there, you are probably wondering if you really need to get insurance. The short answer is yes. But let us help you grasp its importance better.
As you already know, insurance is a means of protecting yourself from financial risks. Simply put, when you get one, you can rest assured that you are protected against unexpected financial losses because when such occur, they are covered by the insurance company.
On the other hand, if you don’t get insurance and some unexpected accident happens, you will be responsible for covering all related costs yourself. This statement alone explains the importance of insurance for students. We all know that college students are living on a tight budget. They often find it hard to afford even basic things like textbooks, dissertation writing services that would help them cope with the hefty academic load, rental, and other expenses.
Now, imagine getting into a situation when you have to cover unexpected expenses. For example, it can be a fire, natural disaster, car accident, health issues, and anything else that will cause you financial loss. Dealing with this on a student’s budget is nearly impossible. Thus, having the right insurance can make a huge difference in your life.
What Types of Insurance Are There?
In a nutshell, you can cover anything of value with insurance. As a rule, this includes life and health, property, vehicles, and other belongings that have value.
Today, there are around eight basic types of insurance. Each of them works differently and protects you from different kinds of loss. However, college students typically don’t need to bother about them all.
Generally speaking, there are three most important types of insurance that students should consider. These include:
- Renter’s insurance is a type of property insurance used to protect the property you don’t own but rent. As a rule, this insurance will cover expenses related to fire, theft, natural disaster, and similar damage. If any of such accidents occur, the insurer will cover the cost of such items as appliances, electronics, clothing, furniture, legal fees, medical expenses, as well as extra reparation expenses, and even accidental damage to someone else’s property.
- Automobile insurance. This kind of insurance is important to students who decide to take their cars to college. It usually covers all property, liability, and medical expenses that arise in the case of an accident, theft, or damage to a vehicle.
- Health insurance. Finally, one more kind of protection all students need is health insurance. Typically, such insurance covers hospitalization, emergency evacuation, and routine doctor visits that can happen due to different physical and mental health issues. Students can significantly lower their medical bills and rest assured that they are protected from various health risks by getting this type of insurance.
The Bottom Line
Now that you know what it’s all about and why you need it, the last question is, how do you choose the right insurance for you?
At the end of this guide, let us give you a step-by-step plan:
- Decide on the type(s) of insurance you want to have;
- Find a trusted and reputable insurance company/marketplace;
- Compare different types of insurance plans to define what suits your needs most;
- Compare insurance plan networks, premiums, and out-of-pocket costs;
- Compare the benefits you will get with every insurance.
Follow these simple steps to find a solution that works for you!