Since Life Insurance is a protection tool designed to offer monetary support to the family in case the insurer passes away, it is one of the most vital decision one takes during his/her lifetime. Many of us make a mistake by thinking that it is nothing more than simply buying a policy. But my friend, buying life insurance is more than that and it can even spill financial disaster if you do not make the correct choice. Thus, today we will talk about few innocent mistakes that most of us tend to make while going for life insurance.
Not Doing Enough Research
Nowadays the internet is a source from where you can look out for end number of solutions and answers. So, why not conduct a detailed research on the various types of life insurances available in the market? This will save your family in the long term. The issue with not making enough queries is that you might land up buying a policy which will be either average or will not suit your purposes. But, such situations can be avoided if you will know the various features attached to various insurances.
Miscalculating Your Insurance Requirements
Instead of just picking a number out of thin air, it is imperative to take into consideration, all the factors that you wish to cover under the life insurance. Your age, income, debts, health condition, assets, life expectancy etc are all necessary to look into while you go for a policy. For instance, you have already build enough assets and is not in any debts than you may not require much coverage. But if your situation happens to be contrary to this, then you will definitely need to opt for insurance that can cover your family for a longer duration.
Buying Insurance To Save Tax
This is another major blunder an insurer does while opting for life insurance. It is true that possessing insurances will save you from tax but that will not allow to avail complete coverage. Don’t make the mistake of buying random insurances for the sake of tax benefit, as it will not add up any financial value to your monetary goals.
Naming Single Beneficiary
There are no such issues with naming only one beneficiary, but what if he/she passes away before you or just after you have? This is why it is wise to mention at least two beneficiaries to avoid ending the proceed in your estate. Moreover mention a backup trustee in case those you have named as beneficiaries ceases to show up at the much needed time.
Failing To Compare The Prices
What do we do when we go out for shopping? It is obvious that we will go around a number of shops to determine the best price for the piece of cloth we wish to procure. Same should be the case while looking for life insurances. The insurance market is not limited to a single life insurance agency. So, it is advisable to make a quick study of the quotes that each insurance agency will offer, along with the terms and benefits attached to it. In simple words, buy an insurance policy that will not only be affordable for you but will at the same time fulfill all your financial requisites.
Delaying The Purchase
The sooner you buy your life insurance the better it is. Life is so unpredictable. No one knows what future beholds. You might be in pink of health today, but can you seriously guarantee what it will be like tomorrow? Moreover, sudden incidents can not only result in higher premiums but some agencies can even deny full coverage. So, instead of facing such financial emergencies it is always safer to avail life insurance beforehand.
Possessing Life Insurance Only Through Work
Many working lots have a misconception that he/she won’t be requiring life insurance as their company or employer provides them one. They simply go as per the words of the organization and don’t bother to check out what type of coverage and benefits the work related insurance is offering. Whereas in reality, those life insurance might not take into consideration all of your money related factors. Thus, it is decisive to possess an extra life insurance other than your work related one.