Common life insurance mistakes to avoid.
Life insurance provides a financial safety net for families. It’s wise for many people, even those without dependents. If you haven’t bought life insurance before, the process of shopping for a policy can be daunting. As a result, many people end up buying the wrong policy or coverage. Take a look at these common life insurance policy mistakes and how to avoid making them.
#1: Buying too much or too little
Many people can benefit from life insurance, but not everyone needs it. If there’s no one else depending on your income and you have enough to cover funeral expenses and remaining debt after you pass, you may not need coverage. On the flip side, those with young children may need a lot of coverage. Breadwinners and stay-at-home parents should get adequate coverage so that their family is protected when they are gone.
#2: Not buying it soon enough
It’s easy to put off thinking about buying life insurance because the topic can be pretty morbid. However, doing so is a risky gamble. Life insurance is cheaper the younger you purchase it because the younger and healthier you are, the less risk there is of you dying. Life insurance is not as expensive as many people think it is. Talk to your insurance agent about possible coverage quotes.
#3: Relying on free life insurance at work
Life insurance benefits through work are great – but they probably aren’t enough for those who have a family depending on their income. Work’s coverage is typically one to two times your annual salary, which may not be enough to sustain a family after the loss of a breadwinner. What’s more, life insurance coverage usually ends when an employee leaves the company.
Make sure you have the right life policy that steps in when your family need it the most. Talk to a trusted life insurance advisor to determine your policy and coverage exactly. Contact Donald Weiss Insurance Services to get started on your coverage today.