Don’t Make These Life Insurance Mistakes!

Life Insurance

Don’t Make These Life Insurance Mistakes!

Posted by COTO Insurance & Financial Services
6 years ago | May 14, 2018

Many people make the mistake of assuming that they don’t need life insurance, because they are young, or healthy, or don’t have outstanding debts, or don’t have any dependents, and so on. The truth is that we all need at least a basic policy to cover burial expenses, because none of us truly know what the future holds. And of course, most of us need more than just a basic policy.

So let’s say you understand that you need a life insurance policy. You’ve overcome the first mistake that so many people are making, which is great news… But you’re not out of the woods yet. Avoid these life insurance mistakes as you shop for a policy.

Buying the first policy presented to you. It might sound simple, straightforward, and affordable, but don’t rush the decision. Life insurance is an important decision, like purchasing a home. You wouldn’t buy the first house that you tour, would you?

Basing the decision solely on price. It’s understandable that you want a premium you can afford, but make sure the terms of the policy suit your needs as well.

Enrolling in the wrong type of policy. Different types of life insurance are geared toward different needs. Make sure that you’ve fully investigated and understand exactly what you aim to accomplish with your policy.

Waiting too long to buy a policy. If you wait until you’re older or have developed a serious health condition, you might face higher premiums or a cap on coverage.

Forgetting to tell your beneficiaries about the policy. You would be surprised at how often this happens! Right now, 7 billion dollars in life insurance payouts remain unclaimed. So make sure your heirs know about your policy, so that they can receive the benefits due to them.

Forgetting to update your beneficiaries. Situations can change over time. For example, if you purchase a policy and name your spouse as the beneficiary, he or she will receive the payout in the event that something happens to you… Even if you’re no longer married. Remember to update your beneficiary if life circumstances change.

These are just a few of the potential missteps you could make with life insurance. With professional, experienced guidance, you can avoid costly mistakes and identify the right type of policy for your needs. So give us a call as you’re comparing your life insurance options, and we can help guide you through this complex process.

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