InsuranceThought — Blogs About Insurance

Insurance for "Boomerangers"

Like so many things, individuals’ insurance needs have changed in the face of the current down-turned economy. Young adults and new college graduates have so few options, with such a limited number of job opportunities, that many are finding themselves back at home with Mom and Dad, perhaps believing that despite not having a job, they need to find their own health insurance. These unfortunate young people – termed “Boomerangers” by the industry – have been one of the sources of some insurance consequences.

Jane L. Cline, National Association of Insurance Commissioners President (NAIC) and West Virginia Insurance Commissioner says, “In this economic environment, many young adults and their parents are finding themselves in a position they never expected. A grown child moving back home can create insurance implications that must be considered carefully and understood to ensure everyone stays protected.”

If you find yourself in this circumstance, the NAIC recommends the following:

Review health, auto, and homeowners’ insurance coverage for both children and parents, making sure it adequately reflects your current living situation. You will likely save money by combining existing policies and even ridding yourself of unnecessary ones. Just be sure that the policy you do carry is of a broad enough scope to cover all family members now living together.

Discuss your situation with your agent to determine the right amount of coverage for you and your family. Because of the economic difficulties we currently face, many states are allowing adult children through their late 20s, who don’t have employer-sponsored health insurance, to be insured on their parents’ policies. Contact your state insurance department to learn how your state’s laws affect your and your children’s coverage.

If they don’t qualify to be on a parent’s policy, other options for coverage include:

• Alumni Associations – this may need to take place within a certain length of time after graduation, so check with your or your child’s school for details.
• State Insurance Pools – many states have pools for those who are unable to get private insurance coverage; check with your state insurance department for details.
• Industry Associations – professional groups and associations will often offer members with access to preferred rates; request more information through associations that exist for your industry.

The full story can be found on NAIC’s website, http://www.naic.org, under Headlines – News & Alerts.