Seven Common Life Insurance Mistakes to Avoid

Life insurance is one of the most important financial decisions you’ll make. Avoid these common mistakes to ensure your family is properly protected.

1. Waiting Too Long to Buy

Life insurance premiums increase with age. A healthy 30-year-old pays significantly less than a 50-year-old for the same coverage. Lock in low rates while you’re young and healthy.

2. Buying Too Little Coverage

The general rule is 10-12 times your annual income, but your actual needs depend on:

  • Outstanding debts (mortgage, loans)
  • Future expenses (college for kids)
  • Income replacement needs
  • Final expenses

3. Only Relying on Employer Coverage

Employer-provided life insurance is a nice benefit, but it’s usually not enough. Plus, you lose it when you leave the job. Own a personal policy for portable, adequate coverage.

4. Not Comparing Quotes

Prices vary significantly between insurers. Get quotes from multiple companies to find the best rate for your situation.

5. Hiding Health Information

Never lie on your life insurance application. Misrepresentations can void your policy, leaving your family without benefits when they need them most.

6. Forgetting to Update Beneficiaries

Life changes—marriage, divorce, births, deaths. Review your beneficiary designations regularly to ensure the right people receive your benefits.

7. Choosing the Wrong Type of Policy

Term life is affordable and straightforward. Permanent policies offer lifetime coverage and cash value. Make sure the type matches your needs and budget.

Take Action

Review your current coverage and make sure you’re not making these mistakes. Your family’s financial security depends on it.