We all want to provide for and take care of our loved ones. Life insurance can give you the peace of mind in knowing that your loved ones won’t struggle financially as a result of your death. Yet, many people find themselves more confused and frustrated than reassured when they try to assess their life insurance needs. We’ve put together a list of mistakes people make with life insurance, so that you can avoid these common missteps.
Assuming Employer-Provided Life Insurance is Enough
If you have life insurance provided by your employer, it is a fantastic benefit. Unfortunately, many people assume that the insurance is adequate coverage when it actually tends to be less than you probably need.
Instead of relying solely on the life insurance from your workplace, consider it a starting point. Supplement it with a separate life insurance policy to ensure your financial risk is covered entirely. It’s also important to find out whether or not you are able to take your life insurance benefit with you should you change jobs.
Purchasing the Wrong Amount of Coverage
Too much or too little, the wrong amount of coverage will cost you in the long run. Most people have no idea how much coverage they need. There are several factors that determine your life insurance needs, but they all come down to one important question: How much income will your surviving family members need if you are gone? Once you can answer that question, you can confidently select the right amount of coverage.
Not Updating Coverage as Needs Change
Your life insurance coverage should adapt with your life. A few big changes that can impact your life insurance needs are:
- Getting Married
- Getting Divorced
- Changing Jobs
- Purchasing a New Home or Property
- Welcoming a New Child
Any of the above life changes will impact your present and future financial needs. Whenever your financial situation shifts, there is a pretty good chance your life insurance needs will have changed too.
At Spickelmier Insurance Agency, we think of life insurance as “family insurance” since it is really insurance to provide your family with financial protection and stability in the event of your death. Let us help you find the right life insurance policy and coverage for you and your family. Call or visit us today.