Chapter 5. How do you protect your financial well-being?
Staying insured can help you protect yourself, property, and investments. Here we provide information on five representative insurances that are encouraged for students to have. Remember that all insurances are NOT required but should be considered depending on personal financial and life situations. Since some insurances can be covered by other family members' existing insurances, we advise you to discuss the following options with them to determine the most adequate plans.
How to
- Health insurance: Health insurance is important to protect yourself from unexpected, high medical costs. It can provide free preventive cares such as seasonal flu vaccines and basic check-ups. Most educational institutions provide affordable health insurance plans. Please visit PSU Health Insurance Plan Links to an external site. for more detail. Since the school insurance plan is a part of your school expense, those with student loans can cover premiums if necessary.
- Housing insurance: Whether you live on- or off-campus, protecting your belongings is crucial. Housing insurances typically cover against theft and burglary, fire, water and electrical damage, and other accidental damage. If you live on campus and are under the age of 26, the National Association of Insurance Commissioners Links to an external site. notes that your belonging can be covered by your parent's corresponding insurance policy. On the other hand, if you live off-campus, you will have to purchase your own renters' insurance.
- Car insurance: Typically car insurance is relatively expensive for students who are young drivers with limited driving experience. Do research on finding affordable car insurance options by getting quotes and comparing rates of different insurance companies. Be aware that many different factors affect your premium, including vehicle information, annual mileage, driving history, age, gender, and credit. Discuss with family members to determine the detailed coverages that are considered necessary for you.
- Life insurance: Life insurance basically provides financial protection for your family members from unpaid loans or other debts in the event of a student's untimely death. Although it could be the last thing to consider among different insurance types, it can be important if you have private student loans with your parents being the co-signer.
- Travel insurance: If you participate in a study abroad program or other school-approved travel, purchasing travel insurance is necessary to protect yourself from unexpected emergencies. Please visit the Global Programs Links to an external site. to inquire more about the travel insurance options.
In addition to staying insured, protecting your identity against identity theft is important for your financial well-being. Identity theft happens when someone illegally uses your name, credit card information, passwords for your financial accounts, and social security number to make purchases or commit frauds in your name. To prevent being a target of such a crime, we advise you to:
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- Create strong passwords and store the information safely
- Protect computer and electronic devices
- Be careful in sharing personal information on the internet
- Shred credit card and bank statements before throwing them into the trash; more preferably, request your bank to send electronic statements
- Review transactions on your bank and credit card accounts regularly to detect inaccurate information
Please visit our related modules on Insurance Planning and Identity Theft.
Practice
Now that you know how to protect your financial well-being, think of paying it forward, and discuss adequate insurance options for you and share useful tips to protect your personal information with your family and friends.