Life insurance is a tricky process when you’re doing it on your own or working with an agent who has little experience. Arming yourself with information now can save you from making mistakes that may cost you in the future. We’ve reviewed many term life policies.
Here are the top 3 mistakes you should avoid when updating or applying for a term life insurance policy.
1. Delaying the Process
When it comes to purchasing life insurance, later is never better. The more you put it off, the more expensive your rates can be. Remember, determining risk is one of the main aspects of your plan. They see you as more at risk for health problems as you age. It is best to lock in a rate as soon as you can in order to pay less in the long run.
Waiting can also be detrimental for your family in case something unfortunate and unexpected happens. You want to make sure they are covered and taken care of by having the right policy in place.
2. Not Buying Enough Coverage
Chances are if you hold a policy with your workplace, it’s probably not nearly enough to take care of your family’s expenses long-term. Let’s say you don’t have your job’s policy—how much coverage do you have?
We’d say you need at least seven times your income to ensure your family doesn’t have to worry about paying the mortgage or how college tuition will be paid. They have a comfortable amount of time to figure out their next steps. This is a devastating time for your family, and money would be the least of their worries. We can see to it that they are well taken care of with an in-depth policy review. This brings us to one of the biggest mistakes we see.
3. Not Reviewing the Policy Over Time
We see this way too often. It’s the reason we’re so passionate about providing families and professionals with the right guidance. We urge people to review their life insurance policies regularly. The policy you received when you had one child and a condo may have benefited you ten years ago. That same policy is not suitable now that you own a business, have 3 kids, and live in a large house. In this case, it’s important to alter your plan based on the successes and changes you’ve had in the last few years.
The insurance world can be difficult to navigate. Without a clear understanding of their current plan, it’s difficult to be certain that your clients have the right coverage. If you’d like to take a closer look, you’ve come to the right place. We can answer your life insurance questions and provide the clarity you need to sleep easy. Learn more about our services or join our newsletter today. To contact us, click here.