Just turned 26? Here’s what you should know about all things insurance

Illustration of man holding groceries walking

Turning 26 is a mix of “Woohoo, I’m an adult!” and “Wait, what’s a deductible again?” It’s that milestone when you may no longer be covered by your parent’s health insurance (except for certain states) and suddenly realize that adulting is more than paying rent and buying your own groceries. It’s also about protecting yourself—your health, travels and your future.

Insurance may not be the most exciting part of adulthood, but trust us: it’s worth figuring out now, so future you doesn’t have to. Let’s break it all down, one manageable step at a time.

Insurance 101: The basics

Before we dive into the details, let’s decode some of the insurance jargon you’re bound to encounter. Think of these as the buzzwords of adulting:

  • Premium: Your monthly or annual cost for insurance—basically a subscription fee for peace of mind.

     

  • Deductible: The amount you pay out-of-pocket before your insurance kicks in. For example, if your deductible is $1,000, you’ll cover the first $1,000 in costs.

     

  • Copay: A fixed fee for certain services, like $20 for a doctor’s visit. Copays usually don’t count towards your deductible.

     

  • Coinsurance: The percentage of costs you share with your insurance after meeting your deductible. For instance, if your coinsurance is 20%, you pay 20% of the bill and your insurance pays the rest.

     

  • Out-of-pocket maximum: The most you’ll pay in a year for covered services. Once you reach this limit, insurance covers 100% of eligible expenses.

     

  • Network: A group of healthcare providers that your insurance company works with. Staying in-network usually saves you money.

     

  • Claim: A request you make to your insurance company asking them to cover a specific expense.

     

Pro tip: Save this cheat sheet—you’ll see these terms a lot when shopping for policies.

Health insurance: Your non-negotiable 

Health insurance is your MVP in the game of adulting. A single ER visit can cost more than a weekend trip to Paris, so don’t skip this one.

  • Employer-sponsored insurance: If your job offers health insurance, this is often the most affordable option. Employers typically cover part of your premium, reducing your out-of-pocket costs. 

  • Marketplace plans: If your employer doesn’t offer insurance or you’re unemployed, explore the Health Insurance Marketplace. Plans come in tiers (Bronze, Silver, Gold and Platinum) to suit your budget and coverage needs. You might qualify for subsidies based on income. 

  • Catastrophic health plans: Under 30 and healthy? A catastrophic health plan might work. It has low premiums but high deductibles, meaning it only covers you in the event of a major emergency or illness.

     

Pro tip: When comparing plans, focus on the deductible, out-of-pocket maximum and copays. These numbers make a big difference when it comes to your wallet.

Illustration of a medical bag

Dental insurance: More than just clean teeth 

Dental insurance might not seem urgent, but skipping it can cost you big time. Regular cleanings and check-ups are a small price to pay for avoiding cavities (and the big bills that come with them).

  • Employer coverage: If dental insurance is part of your benefits package, take advantage of it.

  • Stand-alone plans: No employer coverage? Look for a plan offering preventative and basic procedures.

Pro tip: Considering orthodontics like braces or Invisalign? Choose a plan with orthodontic coverage—it could save you big.

Vision insurance: See the bigger picture

Even if you don’t wear glasses, vision insurance is valuable. Annual eye exams can detect more than vision issues, like diabetes or high blood pressure.

  • Routine exams: Most plans cover yearly eye exams.

  • Eyewear discounts: Get help covering glasses or contacts if needed.

Pro tip: If your eyesight is perfect, opt for a basic plan that covers exams without breaking the bank.

Travel insurance: The unsung hero of adulting

Here’s the thing about travel: plans don’t always go…well, as planned. Travel insurance can be your safety net for the curveballs life (or vacationing) throws your way.

  • Why you need it: A delayed flight or lost luggage can derail your plans—and your budget. Travel insurance can act as a safety net.

     

  • What it can cover: Covered reasons for trip cancellations, emergency medical care, and lost or delayed belongings. Faye plans can protect your health, trip and stuff while offering 24/7 support and a wide variety of add-ons for your specific needs (like Vacation Rental Damage Protection if you’re renting out a villa with all your friends). Check all of our coverage options out here.

     

  • How to get it: You can buy travel insurance through your travel advisor or directly from a travel insurance company. Faye makes purchasing a policy easy and can be done directly through our website or our app, available on iOS and Android.


Pro tip: Don’t assume your health insurance covers you abroad. Most U.S.-based plans don’t.

Illustration of a man walking through an airport with luggage

Other important insurance to consider

As you step into full-fledged adulthood, it’s worth exploring other types of insurance that can provide financial security in different areas of your life.

  • Renter’s insurance: Protects your belongings and liability as a tenant.

  • Homeowner’s insurance: Essential if you own a home, it protects against property damage and liability, and is often required by mortgage lenders.

  • Pet insurance: Helps cover unexpected vet bills for your furry friends.

  • Car insurance: Required in most states; covers damages and liability.

  • Umbrella insurance: Provides extra liability coverage beyond what your home, auto or renter’s insurance covers, offering an extra layer (or umbrella) of protection.

You’ve got this

Turning 26 is a milestone, and navigating insurance is just one part of the journey. From health and dental to travel insurance, protecting yourself is an investment in your future—and it doesn’t have to be overwhelming.

At Faye, we’re here to make it easy (and even enjoyable). So go ahead, adult like a pro—you’ve got this.

Some of these activities and websites are suggestions and Faye is in no way associated with them. This post is meant to give you ideas and inspiration on what to know about insurance once you hit 26 years old.

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