3 Common Mistakes to Avoid When Buying Life Insurance
January 15, 2013 
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1. You Don’t Buy Enough Coverage
When you bought your first policy, it was to cover a specific asset or need that was in existence at that time. However, most times people forget about that first policy and never have another insurance review. That $100,000 policy isn’t going to cover the kid’s college, pay off the mortgage, any debt, or provide the comfortable lifestyle that you have worked long and hard to give your family. You’d be surprised at how many people think that a $50,000 permanent whole or universal life insurance policy is enough. It won’t be.
2. Buying Employer Provided Group Life Insurance
The life insurance is so much less expensive this way. Why is this a mistake?
If you think about this, the average person changes jobs 5-7 times in their lifetime. What happens to your life insurance when you change from one job to another? It doesn’t come with you.
So when you leave your current employer you’re at the mercy of the old employer to determine if you can afford the higher insurance rates since you are no longer part of that larger group. You are also at the mercy of the new employer offering group life insurance. Also, since you are older now than when you first bought the other policy your rates will be higher.
If the employer doesn’t have group life insurance then you will have to buy it from an independent life insurance solutions specialist. Even if your new employer does offer coverage, purchasing life insurance from a Life Insurance Solutions Specialist will ensure that you always have coverage and allow you to avoid this costly situation.
3. Not Planning for the Future While at a Younger Age
The main factor in determining the cost of insurance is age. The younger (and healthier) you are the less it costs. This is true for all varieties of life insurance. Many people buy just enough life insurance coverage only for their current assets. However, a Life Insurance Solutions Specialist can help you create a plan to make sure you will be covered for future needs. Like the growth of your family, the purchase of a larger home, college for your children, retirement planning, and help with long-term care expenses.
