You may not feel ready to officially start #adulting once you receive your college degree. But responsibilities wait for no one, and there are a few things you'll need to think about once you graduate from college.
You may not feel ready to officially start #adulting once you receive your college degree. But responsibilities wait for no one, and there are a few things you'll need to think about once you graduate from college. The first few months of post-grad life might include moving into a new apartment, buying your first car, or getting a headstart on your loan repayment plan. No matter what the future holds, Keller-Brown Insurance Services will support you every step of the way. Get in touch to work with us on a customized insurance plan that sets you up for success in your post-college years.
Here are a few policies new college graduates should consider.
Life insurance
One of your biggest financial responsibilities post-college is likely to be your student loan payments. If you have private student loans with a cosigner, life insurance is highly recommended. Private student loans don't go away if the primary borrower passes away. That means your cosigner would be on the hook for your student loans.
In Maryland, college students graduate with an average of $42,861 in debt. That's more than any state in the country, besides Washington, D.C. Though Pennsylvania graduates typically carry a lower rate of debt, the burden is no less significant. Life insurance provides essential financial protection to your loved ones in the event of your death.
Even if you don't have private student loans, it's never too early to get life insurance. Insurance premiums will be lower, and your policy will have more time to accumulate cash value. If you plan to start a family, getting life insurance at a young age enables you to lock in an affordable rate while also establishing a safety net for your loved ones.
If you're lucky enough to have a job lined up when you graduate, your employer might offer basic life insurance benefits. However, don't rely on that alone. When you lose or leave that employer, you also lose the life insurance policy. During that time, you could develop health issues that prevent you from getting affordable life insurance. Additionally, your employer-sponsored policy may not provide enough to cover current and future debts. With your own policy, you don't need to worry about changing jobs.
Employer-sponsored benefits
While onboarding with your new employer, you'll likely have lots of decisions to make. From deciding whether to opt-in for vision and dental to setting up your retirement account, it's important to take advantage of these benefits.
Most importantly, if they offer to match your retirement contributions, be sure to take full advantage of it. Start budgeting for your future from your very first paycheck, and you'll be on a path to responsible financial planning.
Renters' insurance
Think the same renters' insurance policy you shared with three roommates will be enough in your new solo apartment? Think again. Whether you're planning a move to a new apartment, or you're sticking around your college town for a while, we recommend reviewing your renters' insurance policy.
Often required by landlords, renters' insurance offers financial benefits in the event of a break-in, storm damage, or other unforeseen circumstances.
Why is it so important to review your renters' insurance post-grad? You might receive a new laptop as a graduation gift or invest in the perfect work-from-home desk. Items like these can be expensive, and it's important to take them into consideration when determining your coverage needs. Following graduation, take an inventory of your belongings - everything from your electronics to clothing. The level of coverage you buy should equal the replacement cost of your belongings to ensure you're protected in the event of a total loss.
Additionally, many homeowners' policies provide automatic coverage while children of a certain age are away at school. However, that coverage has an age limit. Likely, by the time you graduate, you no longer qualify for coverage on your parents' homeowners policy.
Auto insurance
Whether you're upgrading your car post-college or officially moving out of your parent's house once and for all, a personal auto policy is essential.
Unfortunately, you can't stay on your parent's policy forever, and auto insurance is required by law for Pennsylvania and Maryland drivers. Once you move away from home, it's time to secure your own auto insurance. If you live independently but still drive a family car, you'll need to get the car titled in your name and onto your own policy.
Your post-college years might also involve a new car purchase. If you plan to invest in a new car, consider purchasing gap coverage to protect you in the event your car is totaled. Reports show dangerous car accidents are happening more frequently. Gap coverage helps you cover your auto loan if your car is totaled.
Set yourself up for success with Keller-Brown Insurance Services
Want to make an easy transition from your parents' policies to your own insurance coverage? Get in touch with an agent to build a customized policy.
Not sure when to make the switch to your own policy? Check out our guide to when adult children should get their own insurance to find out. In fact, it's likely you'll need one sooner than you think.