Mistake #1
Don't forget to update the beneficiaries on your life insurance
policies regularly. Update it every few years or when there's a
major life event such as marriage, divorce, new babies, death of
beneficiary, etc. I hear sad stories all the time from people
who's husband, father, or wife forgot to update the beneficiary
on their policy. Instead of the deceased's family getting the
money it's some ex-wife, ex-husband, cousin, distant relative,
ex-girlfriend and the current family and kids are left
penniless. That's tragic.
Mistake #2
It's important to not let your life insurance lapse when you're
switching bank checking accounts. Most people have their life
insurance premiums taken out by EFT (Electronic Funds Transfer)
every month and forget to notify the insurance company of this
change. And guess what? Murphy's law strikes when you least
expect it and can't afford it. It's a high chance that something
will happen when you've been paying 20 years for insurance and
then when it has lapsed for 3 months there's a car accident.
Notify the insurance company when closing and switching bank
checking accounts.
Mistake #3
When requesting life insurance quotes most people aren't aware
that they don't have to set up an appointment with the first
agent that calls to give them a quote. You can receive a quote
over the phone or through email. And you don't have to buy life
insurance from the first Insurance Agent you talk to. It's ok to
shop around, but please be polite when you turn down the other
agents. Selecting an Insurance Broker is often easier than
working with an agent that only represents one life insurance
company. A broker will try to find the lowest rate for you and
the best policy to fit your situation. An agent that only works
for one company called a "captive agent" can only offer you the
products from that one company.
Mistake #4
Buying life insurance that does not require a medical exam. It's
often 2-3 times the price of normal life insurance and not worth
it if you are perfectly healthy. A medical exam can be
inconvenient but it can save you several hundred of dollars a
year. Now think of how much you can save if you multiply that by
30 years or whatever length you plan to keep that life insurance
policy.
Mistake #5
Buying the life insurance policy with the intent to commit
suicide. Ok, this is silly but there are people that face
depression and have suicidal thoughts. First, this idea isn't
going to pay because most insurance company and policies have
this suicide clause that states if you commit suicide within the
first 2 years the company won't pay the death claim. Don't do
it, please get help if you are thinking this.
Mistake #6
Canceling your old life insurance policy when you're purchasing
a new life insurance policy with another company but the new
policy hasn't been issued yet. Wait until you have received the
new policy before canceling your old one. You don't want a few
months where you don't have life insurance. You don't know what
can happen during that time.
Mistake #7
Not getting enough life insurance coverage. It's hard to
understand why some people would spend money to buy
$10,000-50,000 of life insurance. That is such a small amount,
certainly not enough to pay off a mortgage, send a kid to
college, pay off loans or debts, and can't support someone for a
few years. At least find out how much it cost for
$250,000-300,000 of coverage. It may be cheaper than you think.
Mistake #8
Lying on the life insurance application. The insurance companies
have a way of finding things out. If you lie on the application
then insurance company may not pay the death claim and just
refund the premiums if they find out. Be honest about all
medical conditions and list all the medication you're taking.
Category : VOIP
