7 Mistakes to Avoid When Buying Life Insurance

If you are weighing your options about life insurance, you are in the right place. Before making your decision, it’s wise to gather as much information as possible. So today, let’s learn from the mistakes of others and review some issues to avoid when you buy life insurance.

One common mistake that people buying life insurance make is to assume that they can’t qualify for a decent plan. Whether it’s your age, your lifestyle, or overall health that concerns you, I promise there is still a plan out there for you. Many clients hear the word “medical screening” and automatically think that any findings will disqualify them from a good plan at an affordable rate. 

That’s just not the case! There is life insurance out there for everyone. As the phrase goes, “there is a shoe for every foot.” The same is true for insurance. Plenty of policies do not require a medical test at all. Some are specifically designed for older adults. Don’t assume you can’t find a good plan.

Not having any life insurance is a dangerous mistake. No one really knows when they will leave this life, and being unprepared means leaving your loved ones financially crippled by your death. 

No, it isn’t pleasant to think about, but necessary to address. Funerals are expensive. Even the simplest burial or cremation processes can be thousands of dollars, not to mention the bills, debts, and obligations you leave behind. A life insurance policy can be one of the greatest gifts you leave behind. 

Instead of just typing “life insurance” into Google and purchasing the ad that paid the highest price, go to your trusted, local insurance agent. I can help you find a plan that is perfect for your unique needs.

One great aspect of being an independent salesperson is that I can go through a wide range of reputable companies, and am not tied to a single organization. That’s why I can find you the best policies for your needs, at a rate you’re comfortable paying. 

Also, having one, single office handle your insurance needs means you still get the benefits of a single contact person, who cares about your individual needs and gets to know you, building a relationship over time..

Another common issue many people assume is that their place of employment provides all the life insurance they may need. This is very seldom the case. Firstly, your employer may not provide coverage for family members. Even your children should be covered by some sort of plan. Sadly, the cost of a child’s death is no less expensive than that of an adult.

Secondly, even if your job offers options for family members’ plans, they are not likely the best fit for you (or your family members). Though your employer may have picked the best general plan for the majority of workers, that doesn’t mean it fits your specific needs. There is also a chance that more affordable and suitable options exist out there, outside the single plan they show. You are probably better off purchasing a plan outside of the one your company provides (and yes, it’s sometimes wise to have both). 

The older you are, the narrower your options may become when it comes to finding a good life insurance policy. So, don’t postpone taking action! You wouldn’t drive your car (even if it was legal) without insurance. It is an expensive piece of property that you want to have coverage on 24/7. Now imagine the risk you are taking on your own life, worth far more than any vehicle could ever be.

One of the most common mistakes people make when buying life insurance is to not buy enough. To fully understand your needs, you have to imagine that you will no longer be on this earth. You won’t be there to support the family members you are supporting now, which could include a spouse, minor or adult children, or even your parents. 

Now calculate the amount you contribute every month. Do you pay the rent or mortgage? Do you cover all the bills? Is there any other adult contributing to the household?

Once you imagine today’s family budget continuing, but now without your contributions, you can understand how greatly you’ll be missed. It won’t just be your companionship, love, and personality that the world will be without. They also won’t have your financial support.

To be sure your family does not have to worry about money (on top of their loss), be sure your policy covers not just the expenses of your death (such as a funeral, burial, or cremation), but the expenses you leave your family juggling. You will likely want to be sure the home is able to be paid off with your policy. You should calculate the family’s needs over the years and add that in too.

Buying life insurance doesn’t have to be complicated. But, after watching many folks make major mistakes, it is important to educate yourself on your own, personal needs. I’m happy to assist you in any questions or confusion you may come across.

If you still have concerns, the best advice is to seek the assistance of a professional. As selling insurance is my life, I have become an expert with a wide range of knowledge. Feel free to reach out to get a quote for a policy to meet your specific and unique needs!