Thinking of life insurance? Avoid these frequently made mistakes.
If you’re looking into life insurance, then you’re on the right path to protecting your family. Your loved ones are reliant on you, which is why you need to ensure that you have the right financial plan in place for after you pass. When taking such an important step, though, you want to do it right.
Be sure to avoid making these common life insurance mistakes:
Lying on the application – Although it’s tempting to bend the truth so that you get a better rate, lying on your life insurance application can backfire horribly. Your medical history is likely to be examined by a professional company, so you may not even get away with it. If a company finds out that you’ve lied, you could be rejected coverage altogether. It’s best not to take the risk.
Waiting too long – The best time to get life insurance is now! Even if you pay more initially, in many cases, you can ask your insurance company for a reclassification once you quit smoking or lose 10 pounds.
Buying too little – A certain way to leave your family in hot water should you pass suddenly is by getting a limited policy. Don’t start from the premise that you can only afford to pay a certain amount, and then let that decide your policy for you. You should take into consideration your family’s goals, such as your spouse planning to retire or a child going off to college. A policy can ensure that your family’s expenses over the coming years are handled with care.
Not reviewing it – You should review your life insurance coverage every year to make sure it’s still relevant to your circumstances. If you’ve just gotten married, had children, or changed jobs, you may no longer have enough coverage.