Avoid These 4 Life Insurance Mistakes

Many people put off reviewing their life insurance needs, believing their current policy meets all their requirements. But as needs may evolve over time, working with our team to make sure you have adequate protection is crucial for long-term financial security.

One of the most frequent mistakes people make when budgeting is failing to consider future expenses accurately. You need to take debt payments, mortgage payments and funding your children’s education costs into account as well as inflation when making this estimation.

Failure to disclose accurate health information when filling out applications can result in denied or cancelled policies, and could compromise a beneficiary’s ability to receive their death benefit.

Selecting beneficiaries carefully can ensure your death benefit will be distributed according to your wishes, which is particularly crucial for older adults who need to consider community property laws or any legal implications related to community assets. It’s also wise to update beneficiaries when life changes occur – for instance after getting divorced or having children it is essential that intended beneficiaries are reviewed periodically.

Understand the tax ramifications of life insurance, and ensure your premium payments are up-to-date. Furthermore, know what terms of your policy exist including whether it is guaranteed renewable or convertible and benefits like family income riders, term conversion riders, chronic illness riders and return of premium riders that might apply.