The Top Three Life Insurance Mistakes


The Top Three Life Insurance Mistakes

Posted by Infinite Wealth Advisors, LLC
8 years ago | July 4, 2016

Senior Couple Enjoying Romantic Beach HolidayYou know that selecting a good life insurance policy is one of the best ways to protect your family, in the event that something ever happens to you. But making one of these common mistakes can erode the value of your life insurance plan, meaning your family might not be as well protected as you imagined. As you’re shopping for a policy, try not to become overwhelmed with the number of options available to you. By watching out for these pitfalls, you can prevent some of the most common problems with life insurance.

Failing to perform a needs analysis. Perhaps you received something in the mail, offering you $100,000 dollars’ worth of life insurance for a low monthly premium. So, thinking this was a good deal, you signed up and crossed life insurance off of your to-do list.

But if you didn’t perform a needs analysis first, you have no way of knowing whether that policy really offers the right protection for your loved ones. A needs analysis answers your most important questions, such as how much coverage you need and what type of policy is right for your situation. Don’t neglect this important step, or you might spend money on a policy that doesn’t really offer the best protection.

Failing to compare policies with several providers. Once you know what type of life insurance policy you need, and you’ve decided upon a coverage amount, you can just pick one and be done with the whole thing, right? Actually, no. Each insurance provider has a different method of calculating your risk, which is what determines your premium amount. You’ve come this far in the shopping process, so go ahead and take the time to compare rates with at least three different insurance providers. You might as well get the best policy for your money.

Neglecting to reevaluate your needs. Your family’s needs will change over the years, so why would you stick with the same old life insurance policy forever? Every two to three years, or after major life changes, you should perform another needs analysis. If you need more coverage or a different type of policy, talk to us about upgrading to a new one so that you can continue to offer your family the best protection. Give us a call and we’ll help you get started.

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