Are you planning on buying life insurance soon? If so, you might have some questions or concerns.
We’re here to help! This article will cover the four common mistakes that people make so that you can avoid making them as well:
1. Putting It Off
There are times when procrastination is okay. When it comes to getting insurance that will provide financial stability for your family when you die, do not delay. Buying sooner rather than later also means that you get lower rates — as you're younger at the time of enrollment. You're probably healthier at this point than you will be a few years down the road. If you're putting off enrollments because you won't qualify for preferred rates because you're 50 pounds overweight or you smoke, stop stalling and enroll anyway. Once you've made lifestyle changes, you can apply for a new policy and get better rates.
2. Relying On A Life Insurance Policy Through Work
While it's a nice benefit, employer-provided group life insurance plans don't offer enough coverage. They also only cover you for the duration of your employment. Chances are you will have several jobs thought your career. Better to buy a policy that you control now and have it in place until the term expires or you decide to self-insure.
3. Buying Too Small Of A Policy
In an attempt to save money, some people opt for a smaller amount of coverage. Term life insurance is cheap, and usually, the difference between a $200,000 and a $500,000 policy isn't much. Tighten up your budget a bit so that you can afford to get a policy that's value is 10 to 12 times your annual income. If you cannot, work on getting your income up so that you can get the right amount as soon as possible.
4. Paying Too Much For A Policy
Life insurance falls into two main categories: term and whole life (or permanent). The latter is more expensive, as it will stay in place for the rest of your life. A term policy will end at the conclusion of the term (usually 10, 20, or 30 years). If you're 30 now and buy a 30-year policy, at the end of those 30 years, you will be 60 and your kids will be on their own. You should have some savings, and little need for life insurance. At this point, you might decide not to get a new policy.
Don't put it off any longer! Contact us to get quotes on a life insurance policy today.
Also Read: 5 Times to Update Your Life Insurance Policy
Get A Quote