Buying term life insurance can be confusing – you have to try to figure out how much you need to how long you’ll need it. A lot of mistakes are made when buying term life insurance, so here are the ones that you need to avoid.
- Buying Too Little Coverage
- Waiting Too Long to Get Coverage
- Getting Too Short of a Policy Term
- Thinking your Quote is a Guaranteed Price
- Lying on Your Application
- Not Reviewing Your Policy
If you are the primary source of income for your family then you need enough term life insurance to cover daily expenses. Your income should be replaced for the amount of time it takes your family to figure out their next steps. You should always buy at least ten to twelve times your income to cover your family. Don’t forget that both spouses should get term life insurance.
If you are waiting for a certain time to get term life insurance, don’t. You are leaving your family vulnerable is something were to happen to you. The older you get, the higher the premiums for term life insurance will be or even worse, you may not be eligible at all. So save money by buying it now.
Yes, the premiums for a 10-year policy are much lower than a 30-year policy. But what if you have health issues in ten years that make your premiums go up when you want to renew the policy? For families with children, it’s important to get a longer policy, one that is long enough to get your kids through college. So if you have a newborn, a 20-year plan would suffice, but if you are planning to have children in the future, a 30-year plan would be better.
When you fill out a quote form, you are filling out the bare minimum to get an idea of how much a term life policy would cost. But the initial quote is subject to change because it still has to undergo the underwriting process. The underwriting process looks into driving records, requires a medical exam, and even credit history and criminal background. The results of these factors can affect your premium payments.
If you have received a higher premium than expected, it could be because you weren’t completely truthful on your application. Disclosing negative health information will hurt you in the end. Being honest on your application will ultimately save you more money.
Life doesn’t always stay the same. A term life insurance policy needs to be changed anytime a major life event happens, such as marriage, divorce, or having a child. You will definitely need more coverage when you have children because you’ll have more people depending on your income.
At LifePlan Financial, we pride ourselves on our quality work, our honesty to our clients, and the reliability we provide. Getting insurance doesn’t have to be a hassle when you use LifePlan Financial. Contact us today for any questions or get an instant insurance quote to get started.