As a college student, the last thing I want to be worrying about is insurance. Even the word “insurance” induces fear in fellow millennials. “Adulting” (which is what I like to use as the term to reference all adult things that adults do), is already hard enough without having to worry about how insurance works. However, I am here to tell you that insurance is not a scary or intimidating thing if you have the right information and take time to inform yourself! This post, with the help of Aflac, will help dispel some myths around insurance, inform you as to what voluntary insurance is and hopefully leave you with a better idea of how to rock this aspect of “adulting” especially once out of college!
First, Some Insurance Definitions
To start us off on the right foot, let’s define a few common insurance terms and words.
Open Enrollment: Open enrollment occurs in the fall for most U.S. companies and is a time when employees can review their employer-sponsored benefits offerings and choose health insurance policies that are best for them.
Deductible: amount of expenses that must be paid out of pocket before an insurer will pay any expenses
High-Deductible Health Plans (HDHPs): plans that have a deductible of $1,000 or more
Voluntary Insurance: helps ensure individuals who need medical attention have the funds needed to pay health-related costs their primary insurance might not cover, as well as other out-of-pocket costs
Insurance Mistakes to Avoid
When many people, especially millennials, navigate the insurance world, they do not set aside time to review their benefit options. What ends up happening is many millennials end up with inadequate health care protection.
The truth of the matter is, many millennials jump right into a high-deductible plan without even considering voluntary insurance. According to the 2016 Aflac Open Enrollment Survey, more than half (56%) of millennials say there are aspects they don’t understand about their overall health care policy. This comes as no surprise to me because when I talk to my friends about insurance they quickly mutter “Yeah, I have no clue how any of that works”. The problem is that millennials don’t WANT to talk about it or learn about it: according to the 2016 Aflac Open Enrollment Survey, 28% would rather go a day without social media & 14% would rather walk across hot coals than complete their annual benefits enrollment.
Millennials are therefore not considering all of their options and missing out on the best care for the best cost.
Why Voluntary Insurance?
Rather than considering all of the options, millennials are jumping right into high-deductible plans. However, many don’t realize that voluntary insurance is a key component of health care and is especially beneficial for people who have minimal cash in their savings accounts (AKA every college student ever!).
With voluntary insurance, you can focus on recovery rather than financial stress as it pays cash. Rather than the insurance company paying hospitals or doctors, it pays cash directly to you so you have the say in how the cash is used.
Insurance Isn’t Scary!
At the end of the day, insurance doesn’t have to be scary. The most important thing is being informed of your choices. During this open enrollment period, if you are in the middle of navigating the health insurance world, make sure you are aware of your options and considering voluntary insurance! Life is meant to be enjoyed and with voluntary insurance being a low-risk expense, you are free to love and live your life.
Aflac herein means American Family Life Assurance Company of Columbus and American Family Life Assurance Company of New York. Z161128B 10/16
I was selected for this opportunity as a member of CLEVER and the content and opinions expressed here are all my own.