Life Insurance Mistakes
- LCD Insurance Services
- Mar 3, 2019
- 2 min read
Updated: Sep 1, 2019
Sharing some of the most common life insurance mistakes people make, so that you are aware and can make changes, if necessary, to yours.
No Insurance
The worst mistake you could make concerning life insurance is having a need and not having any insurance at all. Very often, people can find all sorts of excuses for not buying life insurance. But how many times have you heard about a young, apparently healthy person dying suddenly in a car accident, leaving behind a spouse, a young child, and no insurance? Sadly, it happens often, and when it does, the family faces not only the emotional trauma but possibly an extremely difficult financial situation as well.
Not Enough Insurance
The majority of people with insurance are underinsured. Insufficient coverage can occur as a result of buying what is affordable instead of what is needed. Failure to review your coverage periodically could also result in insufficient insurance, even if you started out with adequate levels. Inflation rates, your career, and your lifestyle may have changed. Your family could be faced with a large financial gap and left unable to maintain the current lifestyle if you died today. Consequences could include loss of the family home, scaling back of college plans, and possibly years of financial difficulty.
Too Much Insurance
If you purchased a large policy during one point in your life and then didn't adjust your coverage when your insurance need was reduced, it is possible that you have too much life insurance. This is another good reason to periodically review your coverage with a licensed agent. Periodic reviews of your insurance coverage can reveal opportunities to change your levels of coverage to match your current and projected needs.
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