TL;DR: Choosing the right life insurance policy can be overwhelming—avoid these common mistakes to ensure your family’s financial future is properly protected.
Blog Highlights:
-
Compare Apples to Apples: Match policy terms when comparing rates to avoid misleading price differences.
-
Don’t Rely Solely on Employer Coverage: It may not meet your family’s full financial needs.
-
Consult a Pro: Talk to an agent or advisor for personalized advice.
-
Review Regularly: Life changes—update your policy every 3–5 years.
-
Go Beyond Online Quotes: Use them as a starting point, not the final word.
-
Consider a Medical Exam: It may save money if you’re in good health.
-
Insure More Than the Breadwinner: Include caregivers and secondary incomes.
Are you looking to buy life insurance but are you also concerned about the cost? Are you overwhelmed by the amount of information you need to sift through to determine the right life insurance policy to protect your family’s financial future?
If you’re in the process of researching your options, here are 7 mistakes to avoid when buying life insurance.
1. Failing to Compare Life Insurance Plans with the Same Terms
When buying life insurance, compare policies with identical terms and conditions. Comparing apples to apples ensures you get an accurate price comparison, not just the cheapest rate. This step helps you avoid surprises in coverage later.
2. Assuming Your Employer’s Life Insurance Is Enough
Many people assume their employer-sponsored life insurance policy provides sufficient coverage. In reality, group plans may fall short of fully protecting your family’s financial needs. Don’t make the mistake of relying solely on this benefit when buying life insurance.
3. Skipping a Conversation with a Life Insurance Agent or Financial Advisor
A qualified life insurance agent or financial advisor can find a suitable policy for you. They’ll guide you through your options, answer your questions, and ensure your coverage aligns with your goals. It’s best to avoid going it alone when buying life insurance and instead get expert input.
4. Buying a Policy and Never Reviewing It
One of the top life insurance buying mistakes is setting and forgetting your policy. Life changes with marriage, children, career shifts, and more. This means your insurance needs may evolve. Review your policy every three to five years to ensure it still fits your situation.
5. Trusting Online Quotes without Speaking to a Professional
Online quotes can be a helpful starting point, but don’t let them be your final decision-maker. These tools rarely offer the full picture. Use them to begin a conversation with a trusted life insurance agent. A qualified agent can explain the fine print and tailor your policy to your needs.
6. Choosing Life Insurance without a Medical Exam
Some policies advertise “no medical exam required.” But beware: skipping this step may place you in a higher risk pool, resulting in higher premiums. If your health is good, taking the exam can save you money and offer better coverage when buying life insurance.
7. Only Insuring the Primary Breadwinner
Many families make the mistake of only covering the main income earner. But what would it cost to run your household without the at-home caregiver or a second part-time income? Comprehensive coverage should consider the full scope of your family’s needs—not just salary.
Avoid these Life Insurance Buying Mistakes
Avoid the mistakes of buying life insurance. The worst time to find out you don’t have the right coverage is when your family really needs it.
This post is for informational purposes. The details and conditions of insurance policies vary. We always recommend speaking with an agent to understand the terms of your existing policies and the policies you plan to purchase.
To consult with an insurance advisor, call 800-392-6532 or email insure@colby-group.com.
