Don’t make these mistakes when it comes to your life insurance.
As you settle down and get ready to start a family, one of the things that you need to do is secure the right life insurance coverage. Unfortunately, many people do not know the first thing about life insurance, and they end up making bad coverage decisions. To ensure that this doesn’t happen to you, here are some of the common life insurance mistakes you need to avoid.
- Buying the Wrong Amount of Coverage
One of the most common life insurance missteps is buying too much or not enough coverage. If you do not have anyone else depending on your income, then you probably don’t need very much coverage at all. However, if you have a family and are the main breadwinner, then you will need a considerable amount of coverage—at least seven times your annual salary. If you are a stay-at-home parent, you do not need as much coverage as your family’s breadwinner, but you do need to carry enough coverage to pay for childcare, housekeeping, and other services that you normally handle.
- Delaying Life Insurance
Most people put off getting life insurance when they are young and healthy. However, this is obviously risky because it leaves your loved ones in a financially vulnerable state. Delaying life insurance is also a mistake because you will have access to the cheapest rates when you are young and healthy. So, if you have young children or are about to become a parent, then don’t wait to secure your life insurance policy.
- Relying on Life Insurance Through Work
Today, many employers include life insurance coverage as part of their employee benefits package. However, if you have a family relying on your income, then the life insurance benefits your work offers probably isn’t enough. This is because most employer-offer life insurance policies only offer coverage for one to two times your annual salary. As breadwinners should carry life insurance adding up to at least seven-times their salary, this employer-offered life insurance simply isn’t enough. This is why you should secure a personal life insurance policy and treat your work policy as an additional benefit.
These are some of the major life insurance mistakes that you should avoid. Do you need help securing the right life insurance policy to protect your loved ones? If so, then contact the experts at James Page Insurance. We are ready to get you the coverage that you need today.