You’ve heard of Baby Boomers, Twenty Somethings, Y Generation and the Millenials.
Now add Boomerangers to this list.
You probably know one or two. You might even have one living under your roof!
Boomerangers are college graduates and young adults who are unable to make ends meet in the current economy so they move back home with Mom and Dad.
A recent Pew Research Center study found that, in the past year, nearly 13 percent of parents with grown children have had at least one of their adult sons or daughters return home to live for financial reasons. Saddled with college loans and unexpected job losses, many young adults are forced to live at home until they can find a job and get their finances back on track.
This move back home, however, will necessitate a look at health and auto insurance policies to ensure they reflect the new living arrangement.
As part of the review process, families might find they can save money by combining existing insurance policies. For example, they could potentially be added to the homeowners policy rather than maintain renter’s insurance. However, they need to be sure their parents’ policy has a broad enough scope to include them as “insured.”
In fact, young adults might need to consider additional coverage if the move back home requires renting a storage unit for their belongings or if they have big-ticket items like jewelry, expensive electronics or other valuables that go above and beyond what their parents’ policy includes.
Auto insurance coverage is another consideration. Does the young adult have a vehicle that needs to be added to their parents’ policy? Or does he or she need to be added as another driver of an existing family vehicle? Parents can keep any member of the family on their auto insurance policy so long as that person lives in the same house. Rates may increase, so parents should look for discounts given for multiple vehicles, multiple policies, anti-theft devices and good driving records.
Health insurance can be a bit trickier. According to the Colorado Department of Insurance, some types of health insurance allow a parent to cover young adult children up to age 19 if unmarried, and from ages 19-25 if the child is unmarried and either lives in a parents’ residence or is financially dependent on parents. It is no longer a requirement that a dependent child remain in school to be allowed coverage under the parent’s health insurance policy, if other otherwise eligible.
Certain carriers, such as Health Maintenance Organizations and some self-funded programs, don’t have to provide this option.
If the young adult can’t be added to a parent’s policy, other options do exist, including health insurance offered through alumni associations, state insurance pools and industry associations.
Before signing on with a new insurance carrier, check out their BBB Business Reliability Reports at wynco.bbb.org. More information about auto, home, life and health insurance options is available at InsureUonline.org and dora.state.us/insurance
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Luanne Kadlub, BBB Media Specialist, 970-686-9307, lkadlub@aol.com