Spring is a time of year marked by transitions. One particularly noteworthy change is college graduation, an occasion that will be celebrated by an estimated 3 million people this year, according to National Center for Educational Statistics.
Financial advisors, of course, devote considerable time and attention to clients’ efforts to save and invest for the college education of children and grandchildren. But there are some helpful steps advisors can take once college is completed that also will help parents, grandparents and the new graduates themselves as their next stage of life unfolds.
For the kinds of assistance and information that young adults need in the areas of financial planning, budgeting, investing and saving, I defer to financial advisors. But I’d like to identify some possible insurance-related risks that may arise once young adults transition from school to work, and which advisors may wish to discuss with clients.
Advisors need not be insurance specialists themselves to raise these issues, and — as always — should stress that they are not tax, legal or insurance experts. Your value is being able to identify potential issues and refer clients to a knowledgeable insurance specialist or other experts if further information or solutions are needed. That advice alone can be very helpful, and much appreciated.
The following are some issues with property and casualty coverage implications that college graduation may trigger:
• Risks related to living on one’s own. For young people who move to their own apartment or home, renter’s insurance becomes an important consideration. Even though recent graduates tend to have fewer possessions than families with children and homes, for example, young people often have computer and home entertainment equipment, sporting and hobby gear, and even personal items such as jewelry that can be expensive and worth protection.