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Life and Health Insurance for Your Young Adult

By August 15, 2024August 17th, 2024Insurance

Now that your child is an adult, how how long can he/she remain on your health insurance plan? And do they need life insurance?

Most likely they have been on your plan until now, and this is the first time they have even thought about life and health insurance. With a new job there could be several coverage options available, so we encourage you to help them choose wisely and understand the value of each coverage.

Life Insurance

When your child begins working full time, he/she may be offered life insurance as part of the employee benefits package. Here are some reasons to purchase more coverage than what is offered by their employer: 

  • He/she has a child who will need to be raised, fed, clothed, and educated in the unlikely situation of his or her premature death.

  • He/she has student loans along with a co-signer. In the event the primary borrower on the student loan passes away, Sallie Mae will call upon that co-signer to pay off the debt. In fact, the debt often becomes immediately due in full in that circumstance. Life insurance protects the co-signer in this case.

  • He or she could develop a health issue that makes them ineligible for life insurance down the road.

 The younger you are, the more affordable life insurance is. We are happy to discuss options with your child.

Health Insurance

Under the current law, you can add or keep your children on your health insurance policy until the last day of the month they turn 26, provided your plan covers children.

Hopefully, your adult child will have the opportunity to enroll in group health coverage at their new job. In most cases, they will fare better under a group policy than an individual policy. Encourage him/her to take advantage of group rates on the following coverages:

·    Health insurance

·    Dental or vision coverage

·    Disability

·    Life insurance 

These premiums are paid through payroll deductions, meaning some could be pre-tax deductions. They may also be eligible to enroll in a Health Savings Account (HSA) if they are on a qualifying high deductible plan. This helps minimize the financial impact of out-of-pocket medical expenses.  

If your child needs assistance with a short term health policy for any time period, we can help. Contact us with any life and health questions!