Life Insurance Mistakes Many Make
August 9, 2022
Avoiding life insurance mistakes is essential to ensuring that you and your family have comfort and peace when it is time. Investing in a life insurance policy is a significant step towards a stable and secure future. Additionally, a life insurance policy can accumulate cash value, too. Despite these benefits, some missteps can compromise a policy's advantages. Indeed, some of the most common life insurance mistakes can minimize the value of your policy or leave certain liabilities uncovered.
Life Insurance Mistakes To Avoid
Make sure you choose the best policy for your needs by looking out for the following life insurance mistakes to avoid.
Only Carrying Group Coverage
Some companies include a group life insurance policy in their employee benefits packages. It is a nice perk and offers some protection, but it’s unwise to rely only on this coverage for your life insurance needs. It is because most group policies offer minimal coverage — in many cases, only enough to cover one or two years of an employee’s salary. The coverage is also generally contingent upon your employment, so if you leave your company, you’ll likely be without coverage.
Waiting to Get a Policy
Many people have life insurance on their to-do list yet never get around to securing a policy. The longer you wait, though, the more you may pay. In a worst-case scenario, you may even wait too long and lose the opportunity to care for the people you love if you pass away.
Rather than putting life insurance on the back burner, take the time to find a policy now. You’ll unlikely regret investing in a policy too soon, but many people have regretted waiting too long.
Not Shopping for the Best Option
You’ve probably seen advertisements for life insurance online or elsewhere. Many companies sell prospective customers through an easy enrollment process. While this marketing may seem appealing, it’s a significant mistake to go for the first life insurance policy you see.
Doing some research will highlight that quotes often vary widely between companies for policies that offer comparable coverage. You could save hundreds or get better coverage by simply shopping around. Speak with a licensed life insurance agent to help you make the best choice.
Getting the Wrong Kind of Coverage
Finally, ensure that you invest in the right life insurance coverage. The two most common options to choose from — term coverage or permanent coverage — are each ideal for different people. A term policy only exists for a specified period, but it’s usually more affordable, and it can be an excellent choice for young, healthy insureds. Conversely, permanent life coverage is valid for an insured’s entire life. It will also offer cash value that grows over time as you continue investing in the policy by paying your premium.
About 1891 Financial Life
At 1891 Financial Life we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.
Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.