Are you in the market for life insurance? Don’t make these mistakes.
Life insurance exists to protect and provide for your family in the event of your death. Life insurance can be complicated, but that is no reason not to persevere to find the right policy. As there are different options of coverage available, there are some common misconceptions about purchasing life insurance policies. This can quickly lead to people being underinsured, having the wrong coverage, and experiencing a decline in living standards.
Eager to avoid frequent mistakes? Read on.
Not Buying Enough Coverage
Many people are unsure of how much life insurance is sufficient to protect the ones they leave behind. Many studies show that U.S. households are underinsured, making it essential to pair with a reliable insurance agent to ensure quality coverage. When filling out a life insurance policy application and determining how much life insurance you need to purchase, consider buying enough to cover the burial, remaining debt, children’s care and education, mortgage payments, and retirement security.
Lying on Your Application
Generally, those with better health have lower insurance premiums. While it’s tempting to make yourself out to be someone in ideal health for the opportunity to save money, it will soon backfire. You often need a physical exam before an insurance company provides you with insurance, so it’s best to tell the truth now before getting caught out later on.
Forgetting to Review or Update the Policy
A life insurance policy should not be written and forgotten until a tragic event. Many life events warrant a review of life insurance – so be sure to perform an annual review and update as needed!