These common life insurance traps can cause severe harm to your family’s finances.
Whether you’re springing for life insurance because you’re getting on in life, or because you’d rather be safe than sorry, know that it is one of the most valuable policies you’ll purchase. As a selfless coverage, you’ll never reap the benefits of life insurance – but your family will.
Life insurance is designed to protect your family from financial strain when you pass. From paying funeral costs and settling remaining debt, your family can focus on mourning rather than money.
To keep your finances and family protected, avoid these common mistakes!
Picking the Cheapest Policy
With such a precious policy at hand, why gamble on an online quote from a dodgy dealer? If it turns out to be the wrong coverage for you, your family will be left at a disadvantage.
Waiting Too Long to Get Coverage
Without life insurance, you leave your family vulnerable if something unexpected happens to you. Buying a policy while you’re young and in relatively good health ensures that you a) get coverage, and b) enjoy lower rates. Should you wait until you’re much older to get insurance, the policy premium will be much higher as you are at a higher risk for health issues.
Buying for Too Short of a Term
You may be trying to save a few dollars by choosing shorter term coverage. However, should you buy a 5-year policy and have medical issues 6 years from now, your insurance rates will certainly spike, if you manage to get coverage at all.
Lying on Your Application
All of us want to save money on our insurance rates – but cheating the system usually always ends up backfiring. Never lie about your health or personal information as, ultimately, this is detrimental to your family should your coverage be disqualified.
Buying Too Little
Always buy ten to twelve times your income in life insurance coverage. While this seems excessive, if you’re the primary source of income in your household, then your spouse and kids need to be taken care of financially.
When selecting the best policy for you, talk to a professional life insurance expert. Our professionals at Abbate Insurance are dedicated to matching you with reliable coverage for you and your family’s needs. Contact us today in New Haven, Connecticut today to get started.