Frequently Asked Questions
Frequently Asked Questions
What are the types of things I can insure?
There are several common types of insurance: property, casualty, heath, and life.
Property insurance can help protect against costs of property damage, protecting your belongings or home. Casualty insurance helps keep you safe from personal liabilities, for instance, if someone is hurt on your property or if you are found to be at fault in a car accident. Health insurance protects you in the case of covered medical expenses by helping to ensure that the costs of care are within your reach, and life insurance can help protect your standard of living should a loved one die.
At GradGuard™ we've identified several primary areas in which students and young adults can benefit from insurance:
Tuition There are several types of tuition insurance, and plans help to relieve the financial strain higher education could put on students and their families in the event that a student's semester is interrupted or a tuition payer's ability to pay is interrupted. Health Although students and young people are generally healthy, the costs of medical treatment can be difficult to bear without the help of insurance. There are several options for students and young adults, ranging from a short-term plan to permanent, individual plans. Renters Renters insurance offers students and young adults help protecting their belongings, liability, and who don't own their own homes and reside in apartments or dorms. Auto Auto insurance mandates vary from state to state, and this coverage can help students protect their cars and liability. Life Life insurance provides young adults with the means to protect their loved ones and standard of living. Identity Theft Budgeting and saving are only two ways to take care of your finances, for young adults, protecting yourself from identity theft and fraud is important as well. Benefits plans can help monitor students' identities and resolve fraud. Travel Whether you are traveling to school, to a job, or to a Spring Break destination, travel insurance can help protect your trip by refunding fees and offering travel assistance.
What's a liability in the context of insurance?
In insurance, liability is when the insured is found legally responsible for a loss. You could be held liable for something as simple as someone slipping and falling in your apartment and sustaining an injury, or being found at fault in a car accident. You can also be held responsible for property damage, say if a space gets damaged during a party you throw. If you're renting, it's important to keep in mind that landlords do not cover your liability, so their tenants can be held liable and face charges in these cases. Insurance can help protect you from these costs.
What's the difference between an underwriter and an agent?
Underwriters and agents work together to insure customers. While agents sell the insurance, underwriters assess associated risks, and write the insurance policy. Underwriters take on the financial risk, while agencies help determine the most beneficial types of plans for customers.
How do I know how much insurance to buy?
There are many things to consider when trying to determine how much insurance coverage to buy. The best way to figure out what's right for you is to speak with an agent. You'll have to consider potential costs you could pay if you were to go uninsured, in comparison to the rates of an insurance plan. It's also important to think about any risks or circumstances that are specific to your lifestyle. Talk with an insurance agent for more information.
I'm a parent. Can I purchase a policy for my child?
Yes, parents can purchase policies specifically for their children, just be sure to list them as the insured party.
What is the difference between property/casualty and health/life insurance?
Property insurance protects against potential risks property could face such as fire, earthquake, and flood. Casualty insurance protects against being held liable for any damage done to persons or properties due to negligence. Health insurance helps keep the costs of care within your means, and life insurance can provide protection for your standard of living if a loved one dies.
Why am I mandated to buy certain types of insurance, but not others?
Mandating insurance can allow states to better protect their citizens without having to raise taxes. Depending on state regulations, you may find that auto insurance or health insurance can have specific mandated coverages. You can talk with an insurance agent to determine what you need. It depends on your state; Idaho, for example, has only 13 mandates, while Rhode Island and Virginia each have 70.
There can be other reasons you are mandated to get insurance coverage too, regardless of state regulations. If you live in a dorm or apartment building, school administrators or landlords may mandate that residents purchase renters insurance. Be sure to check your lease or with your university to see if they have any insurance requirements.
My parents already have all sorts of insurance. I'm all set, right?
Not necessarily. While many insurance plans can cover the children of the policyholder, additional coverage is sometimes necessary. Families should look over their insurance policies to determine whether their young adult might need something more. Young adults may only be covered under certain circumstances, like if they reside with the policyholder or are under a certain age. It's also important to consider that the risks young adults may face can depend on their life stage, and that they may need different coverages as they get older.
I don't own the place I live in. That means I don't need insurance, right?
Not exactly. Renters insurance can be important for anyone renting a property or living in a dorm because it can help protect personal belongings and liability risks. You don't need to own your residence to be at risk; most landlords and schools' policies do not protect you from certain liabilities, and most do not replace your belongings!
I'm young and healthy. Do I really need a health plan?
Health insurance is important to have because of the risk of unforeseen medical problems arising in the future. In 2005 alone, uninsured students incurred $120 million to $255 million in uncompensated care for non-injury-related medical events (GAO). Health plans can help cover some of those expensive medical costs. Also keep in mind that since the Supreme Court upheld the health insurance mandate, most Americans will be required to have health insurance starting in 2014.
What is life insurance? How does it work?
Life insurance helps the insured protect the standard of living of their beneficiary should the insured die. There are many different types of life insurance, two of these being "term life" plans and "whole life" plans. Term life covers the insured for a set period of time, while whole life protects the insured throughout their life.
Many young adults and students don't think to purchase life insurance. However, it can be smart to lock in a rate while you are young and healthy, since your rate will likely be lower at this time. Speak with an insurance agent to determine if life insurance is something you could benefit from, and whether a term or whole life policy makes more sense for you.
Who is GradGuard™? Who is Next Generation Insurance Group?
GradGuard™ is a service of Next Generation Insurance Group, a national specialty insurance marketing firm that focuses on serving the needs of students, young adults, the colleges and universities they attend, and their families.
GradGuard™ offers insurance and benefits plans suited to the lifestyles of young adults and students, thanks to the expertise of our team comprised of veteran collegiate, insurance, and affinity marketing executives.