Life Insurance Mistakes :
One third of adults have no life insurance at all. But that is not the only mistake. Of course, you have to ask yourself if you need life insurance at all.
- Not buying a policy immediately, before health problems develop
- Not clearly defining what you're protecting - If you don't know why you're buying life insurance, maybe you don't need it?
- Dealing with nameless, faceless quote services - It's an internet age, but why not put an agent to work for you?
- Buying the wrong type of insurance - There are many types of policies with a life insurance element, but they are not pure life insurance i.e. cancer policies, etc.
- Not shopping around - There is such thing as over shopping! Get as many quotes as possible. You will spend less not more.
- Lying about their true health status - The insurance carriers know the game, and if they catch you within 2 years, they might cancel your policy
- Buying too much life insurance - 90% of policies are canceled because people buy so much, they cannot maintain it
- Buying too short a term policy for their needs - life expectancies are going up.
- Buying life insurance as a savings plan, investment or retirement - The returns are just not there.
- Applying for life insurance at several companies at the same time - That will attract a lot of attention
- Not knowing what's on your medical records - There could be mistakes
- Not finding out the underwriting requirements (Blood, urine, physical, electrocardiogram, etc?) before applying
- Not developing a relationship with a knowledgeable insurance professional
- Buying accidental death insurance*
*It's okay to buy the accidental rider in addition to regular life insurance, in case you die in an accident. But it's very restrictive, so do not think you are going to get fully covered with an accidental death policy.
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