Buying a life insurance policy – or– Almost always a good financial decision. By paying a small sum to an insurance company, you can ensure that your loved ones are protected in your absence.
Most financial advisors recommend life insurance regardless of your age or health. And many employers offer it alongside traditional medical and dental benefits. They even allow discounted rates for supplemental coverage, if you pursue it.
whenAnd while it can be tailored to your individual needs and circumstances, it may seem like a relatively simple personal finance decision. If you’re currently in the market for life insurance, start by getting a free price quote so you know exactly what to expect.
3 Life Insurance Mistakes to Avoid
As you begin the life insurance process, avoid these common mistakes:
Underestimate the coverage you need
Specific to your personal situation, personal financial health and preferences. There is no clear picture that applies to everyone.
With that being said, life insurance provides one ultimate opportunity to leave your family with financial support. Don’t discount that. If you can afford it, go with the higher amount. If you have a rough idea of how much coverage you want, talk to a provider and get a free price estimate now.
If you are young and single, you may not need as much insurance as you would if you were older with a family. But if you’re married, you’ll want enough to cover you, your spouse, and any lost wages that may result from your death. If you have kids, you’ll want to cover them, too. And if you have a mortgage — and don’t want to leave your family without the income to pay it off — you’ll want enough insurance to cover it.
Factor all of these considerations into your thinking when trying to determine how much coverage you need.
Not comparison shopping
As with most personal financial decisions, you’ll want to do your homework to make sure you’re making the right choice. Don’t just accept the first low offer you get. You may be able to get a higher coverage amount for a lower premium.
You shop for mortgages, home and auto insurance, and even student loans. The same works for life insurance. Different providers offer different coverage. Use the table below to get started getting a quote from Haven Life or to start comparing your options
Only compare what’s out there when you know exactly what you want and how much you’re willing to pay. Make an apples-to-apples comparison to accurately measure your offer.
For example: If you are looking forCoverage for $250,000 from one provider, make sure you look for the same type of insurance for the same amount from another. Otherwise, it will quickly become confusing.
Buy it later in life
Sometimes it makes sense to save and delay purchases when you have a little more money in your pocket.
Not so with life insurance. The longer you wait, the older you will be and the more expensive you will be to insure. Those costs will be reflected in the premium your life insurance company wants to pay you. A new policy will therefore become more expensive every year as you age.
Even if you can’t afford the coverage you wantBetter to have something in place than nothing. Especially when you know that waiting around isn’t convenient.
Avoid other life insurance mistakes
While the above mistakes must be avoided, there are some additional items that you should avoid while getting a life insurance policy. It includes:
- Not preparing for your medical exam. An insurer may require you to take the whole Before they approve your application. This will include blood work, urine tests, and pulse and blood pressure monitoring. Make sure you’re prepared for it by managing your salt and alcohol intake. Also avoid caffeinated drinks. And don’t forget to ask if there are any other steps you need to take before starting the test to make sure your test is as positive as possible.
- Over-reliance on employer coverage. Many employers will provide a baseline level of life insurance coverage. But it will be fine – a baseline level of coverage. Do not rely solely on this protection. If that doesn’t seem like enough, consider supplemental life insurance. You may be able to get a reduced rate if you go through the same provider your employer uses for your standard coverage.
- Mismanagement of your beneficiaries. You get life insurance to protect your loved ones after your death. But make sure they can easily access that protection by properly listing the beneficiaries on your policy. So, don’t list a minor as your primary beneficiary (unless, of course, they really are your sole beneficiary). It is generally best to list your spouse or an adult as primary and children and minors as secondary. Consult a life insurance expert who can help you create a plan that works for you and your family.
While this list is not an exhaustive one, it should help point you in the right direction. If you have specific questions about coverage, what you qualify for, and how much you can expect to pay, it’s easiest to talk to a provider. They can answer your questions and help you find a budget-friendly policy that’s right for you.
Get started by getting a free price estimate now.