Buying life insurance is not something you look forward to. Not only does this cost money, but you will have to face the idea that you won’t be around forever.
Even though it may not be exciting to purchase a policy, it is often the responsible thing to do.
If you must go through this process, you might as well get what you want in the end. To ensure that this happens, you need to avoid all mistakes. Some of the most common include:
1. Not knowing the difference between term and whole life insurance. These are not one in the same, so be sure to discuss the differences, pros, and cons with your agent or broker.
2. Overlooking the beneficiary portion of the application. Who do you want to receive the death benefit if you pass away? This is the person you should name as the beneficiary.
Tip: you have the right to change your beneficiary as you see fit. For example, you may want to do this if your spouse is listed but you recently went through a divorce.
3. Focusing all your time and effort on one company. There are hundreds of companies that sell life insurance. Why give all your time to one? You can protect against this by using a broker.
4. Neglecting to review your policy in full before signing on the dotted line. Make sure you are 100 percent clear regarding what type of coverage you are getting, as well as how much it will cost. It will take some time to review the finer details of your policy, but it is better to do this upfront than to be surprised down the road.
It is important to avoid these life insurance mistakes. Doing so will allow you to confidently purchase a policy.