Shopping for Life Insurance can be hard. The topic is difficult and often you don’t have enough information on your own to make the right choice. There is a lot of info about Life Insurance but we are going to talk about the most important things – avoiding the life insurance mistakes. Here are the most common ones.
Not Having It At All
Not having life insurance is a mistake most people do. Nearly half of all Americans don’t have it. It’s important to know two things about it. First of all, life insurance will provide financial security to your family if something happens to you. So, not having it is a potential risk for your loved ones to be in financial trouble. Second, it’s totally affordable.
Not Enough Coverage
Of course, the premiums are based on coverage. But you don’t want to reduce your coverage because of the price. There are a lot more to be done to lower your premiums. There is a simple way to calculate what you need. Take your income and multiply it by 10 to 12. That’s it.
Waiting Too Long To Buy
If you start early and go for a long term policy that’s the smart choice. Your premiums are going to be low because your young and in good health. And more important they will stay low, because your policy is long term.
Forget to Update It
Your life will change. You will have family and children, you will buy a house, your income and standard of living will go up. That’s the good news. The bad news is you calculated your coverage when your life was different and now your coverage doesn’t even touch what you need. So, you need to update it. Also, you need to update your beneficiary accordingly. Sometimes life can change dramatically and you can get divorced. In this case you need an update again. If you are not sure what you need to do, consult with your insurer and get professional help. It’s important.
Buying The Wrong Type
If you don’t have family and children, you don’t have a lot of extra income but want to make sure you’re covered, Term Life is what you need at this point. When you have the budget you can always upgrade. But staying on term life when you have family and enough income to afford it is a life insurance mistake you don’t want to make. Whole life will be the best choice in this scenario.
Finally, we want to add that no insurance plan can replace a healthy lifestyle. Try to make positive changes to your life, like quitting smoking, cutting back on drinking, driving safely, going to the gym regularly, reducing stress, eating healthy food. Not only you will lower your premiums but your whole life will get better.
Take a look at what we can offer you here and call us now to discuss your options about life insurance. Also, take a look at what other insurance options we have for you.