5 Life Insurance Mistakes

Mistake #1 – Not Reviewing Coverage Regularly

Don't forget to update the beneficiaries on your life insurance policies regularly. Update it every few years or when there's a major life event such as marriage, divorce, new babies, death of beneficiary, etc.

Mistake #2 – Buying From The Wrong Agent

Selecting an Insurance Broker is often easier than working with an agent that only represents one life insurance company. A broker will try to find the lowest rate for you and the best policy to fit your situation. An agent that only works for one company, called a “captive agent”, can only offer you the products from that one company.

Mistake #3 - Procrastination

The cost of life insurance is impacted by two major factors - your age and your health. The younger you are when you purchase life insurance, the less expensive the premium. Also, you are more likely to be in better health at a younger age. Health conditions can affect your ability to acquire affordable life insurance. Don't assume you will be young and healthy forever. If you need life insurance do not postpone your purchase decision, you may not be able to obtain the required coverage in the future.

Mistake #4 – Not Understanding Your Options

Life Insurance options can be confusing. There are many types of plans available - term life, whole life, universal life, and variable life, just to name a few. Many factors will impact the type of policy you need. Many times, clients need more than one kind of policy.

Mistake #5 – Too Much Or Too Little Coverage

Determining how much life insurance you need requires a careful examination of your current and future financial obligations and the resources that your surviving family members could draw upon to meet those The difference between the two (your financial obligations minus the resources your family has to meet those obligations) is the approximate amount of additional life insurance you need. If this sounds confusing, don't worry. You're not alone. That's why most people turn to a life insurance professional when they want to figure out how much insurance they need.