Insurance needs change as economy forces more young adults to move back in with parents

FOR IMMEDIATE RELEASE
February 17, 2010
Contact: Jason Moon 517-335-1700
http://twitter.com/miofir

LANSING — A turbulent economy has forced many new college graduates and young adults in Michigan to move back home with their parents. The Office of Financial and Insurance Regulation (OFIR) today offered advice to these so-called “Boomerangers” and their parents on the important insurance consequences this increasing trend creates.  

“A young adult moving back home can create insurance implications that must be fully understood to ensure the entire family stays protected,” OFIR Commissioner Ken Ross said.  

A recent national 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.

OFIR recommends that families who find themselves part of this new phenomenon consider the following:

Review Your Insurance Policies

A move back home provides the perfect opportunity to review existing health, home and auto insurance coverage for both parents and children to ensure it adequately reflects the new living arrangement. 

Employers determine who are considered eligible dependents in the health care plan they offer and many employer-based health plans cover young adult children through their late 20s. Parents with employer-based health care should contact their human resource department to see if their young adult child can be added to their health plan.

As part of the review process, families might find they can save money by combining existing insurance policies. For example, young adults renting before moving back home no longer need renter’s insurance; instead, they could potentially be added to the parent’s homeowners policy.

Auto insurance coverage is another important consideration. Does the young adult have his or her own car that needs to be added to the parent’s policy? Or does the young adult need to be added as another driver of an existing family vehicle?

Parents should discuss the situation with their insurance agent to determine what level of coverage their family needs.

Explore Alternative Options for Insurance Coverage

If young adults don’t qualify for a parent’s policy, other options can be considered to make sure they stay protected.  Options include:

Alumni Associations: University alumni associations can be a resource for cost-effective insurance plans — health, auto, life — but this might require application within a set period of time after graduation and perhaps membership in the alumni association.

Industry Associations: Many professional groups and associations also provide members access and preferred rates. If part of an industry group, check with the organization to see what benefits are available.

For more information on a Michigan insurance company or product, contact OFIR at 877-999-6442.

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