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How To Avoid The Most Common Mistakes When Buying Life Insurance

By Jason Markum

Life insurance is one of the most important things you’ll ever do in your life and picking the right kind of life insurance is absolutely essential… always. Why? Because if you die, it’s incredibly important for your family to have the financial support they need in order to continue living. Sure we’d like them to continue living in the same manner that they have come to expect… but if you don’t play your cards right, they might not even have enough money to pay for food!

So picking the right life-insurance is critical. The problem is, life-insurance is complicated and there are several different kinds of life insurance and several different ways to buy life insurance and most people get confused and buy the wrong kind or don’t buy enough, or by too much. In this article I’m going to discuss the common mistakes and how to avoid them when it comes to life insurance.

The first most common mistake that people make is buying life insurance when they don’t have any dependents. If you are single, then you don’t need life insurance. Even if you’re planning on getting married sometime in the future and having a family, you don’t need to buy life insurance today. Wait until you start your family because there’s no reason to pay between now and then… and besides anything can happen and you may not even ever start a family.

The next most common mistake is to buy life insurance for your children. There’s no reason to do this, your children will be covered in YOUR life insurance policy if you die. If they die however, there’s no reason for you to collect money… and also no reason for you to have paid money for their policy for all those years.

The next most common mistake is to buy insurance through the mail, or over the Internet, or over the phone from a commercial you saw on TV. You want to sit down with an insurance agent and discuss your exact needs and discuss your family so that you are sure to get the exact policy to fit your exact situation. Everybody is different, everybody’s needs are different, some mail-order insurance policy is not going to cut it.

The next mistake people make is to buy life insurance without disability insurance. Yes it’s a good idea to make sure your family is taken care of in the case of your death… but what happens if you are merely disabled in such a way that you lose your job and can no longer support your family? Not only that, your disability may be incredibly expensive by way of ongoing medical bills forever that you may not have considered and that may not be covered under your regular health insurance policy. So look into disability insurance whenever you purchase life insurance.

There are many other mistakes that you can make when buying life insurance, but these are the most common and if you take care of them then you’re going to be 95% ahead of the game. Just remember to do as much research as possible, and ask as many questions of your insurance agent as you can. This is no time to try to look smarter than you actually are. Play dumb! Ask lots of questions and make sure you understand what you’re getting yourself into and you’ll be just fine.

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