5 Common Costly Mistakes People Make When Buying Life Insurance

A life insurance policy allows you to provide for you family even after you pass away. It represents an excellent asset, especially if one or more family members depend on your monthly income. If you don’t want your loved ones to struggle to make ends meet in your absence, choose to buy excellent life insurance coverage to secure their future. Nonetheless, if you are a first-time buyer, you must do a little research on your own before scheduling a first meeting with an insurance company representative.

You must gain an insight into the insurance sector and its unspoken rules to be able to select and purchase a policy that can actually satisfy all your needs and demands without leaving you high and dry. Many people choose to ignore this phase and visit their insurer without having a clue about what life insurance is all about. This is only one of the many costly mistakes that most people make. Keep reading to discover 5 other miscalculations and omissions that you should avoid at all costs.

1)      Not Being 100% Honest While Filling Out Your Insurance Application

Believe it or not, many prospects who seem eager to invest in life insurance fall into this trap. Why? They are aware of the fact that insurance companies always favor ideal candidates who are younger, healthier, in excellent physical condition and less likely to die before their time.

Therefore, potential buyers tend to hide certain vices, like tobacco use for instance, which make premiums go through the roof. In case you didn’t know, smokers are forced to spend up to three times more money on life insurance than people who do not smoke. Other people lie about their income to get a higher coverage. Moreover, some clients deny the fact that they consume alcohol regularly. These are only a few of the most common lies that customers often feel tempted to rely on to attain their goals. This is a very risky approach that could put your family’s prosperity and welfare on the line, simply because if your lies were to be uncovered, the insurance company would deny your claim. Obviously, your insurer will ask you to provide documentation reflecting your medical history, so there’s really no point in lying.

2)      Planning a Long, Exotic Trip in Advance

Planning to take some time off work and discover a different culture thousands of miles away from home? Your insurance company might not be very supportive. On the contrary, many insurers could turn out to be very inquisitive when it comes to your vacation plans, especially if you express your eagerness to visit a foreign country that has a bad reputation for its virtually endless list of diseases that could cause your premature death. Therefore, it is highly recommended to focus on your vacation plans only after signing on the dotted line.

3)      The Uninspired Decision to Light Up a Cigarette Before the Medical Exam

This is another common mistake a lot of people make, since they cannot anticipate its repercussions. If you are a proud non-smoker, don’t let your friends talk you into smoking a cigarette. You may be tempted to think that this action wouldn’t trigger major negative consequences. In this case, you are wrong. The medical exam could reveal traces of nicotine in your system even after what you may be inclined to call a casual smoke. So do everything in your power to avoid temptations. Always keep in mind that your vices will force you to spend more money on insurance premiums.

4)      Not Shopping Around

Of course, when you can actually afford to secure the future of your family members, you do everything in your power to get the best coverage. The most attractive deal has 2 main attributes: an alluring price tag and a number of remarkable benefits. Don’t settle for the first offer that you receive. Rely on InsuranceQuoteDepot.com to find free life insurance quotes online. Compare rates to find the most amazing type of coverage. Schedule an appointment with your favorite insurer and start taking business. If you can’t understand certain clauses, don’t hesitate to ask for help. Opt for the expert guidance offered to you by a competent lawyer or by a family member with a solid insurance background who could simplify the entire process and enable you to avoid pitfalls.

5)      Waiting for “the Right Time” to Come

Truth be told, there is never “a right time” to spend money. You will always have to pay those monthly bills, put food on the table, pay for the kids’ trips and buy yourself new clothes every once in a while. This is the main reason why you may be tempted to postpone purchases that are not considered top priorities. Life insurance is one of those things that shouldn’t be put on a waiting list. You need to get a great policy while you’re young to save a lot of money, so act now. If insurers tend to favor older, experienced people by offering them the most attractive car insurance policies triggering significant savings, when it comes to life insurance they offer considerable discounts to younger people who want to ensure a brighter, financially stable future for their relatives.

In this case, rates are based on age and, of course, on your general state of health. It goes without saying that young adults are the perfect candidates because they are more likely to have a spotless medical history and are less likely to make insurance companies lose money. So if you want to keep risks at bay and protect your loved ones from the unforeseen, start early. Decide how much coverage you actually need and can afford to get, take a look at free life insurance quotes available online, compare rates and identify the policy that makes more sense to you. If you require additional details or expert advice to make an informed purchase, just pay your old insurer a visit and ask him for his opinion on this matter.