3 Life Insurance Mistakes to Avoid

Life insurance Apple Valley MNIt is essential to select the right life insurance coverage for you and your needs.

Life insurance is designed to provide a financial safety net for your loved ones when you’re no longer around to do so. Depending on your situation, the money could be used to pay off your remaining debt, funeral costs, fund a secure retirement, or help your children pay for their higher education!

As we are in the midst of a digital-savvy age, many people pick a life insurance policy online, without knowing their coverage (or lack thereof!). If you don’t know the facts, it could spell financial disaster for those you leave behind.

To secure your loved ones with the best chance of success, avoid these life insurance mistakes!

Choosing the Wrong Type of Policy
There are two basic types of life insurance: term and permanent. Term policies pay out a specific death benefit and remain in place for a set period of time. Term life insurance can vary from 5 years up to 30 years.

Permanent life insurance stays in effect over the course of your life. This includes whole life, variable life, and universal life insurance, allowing you to build cash value that you can draw against later on.

When you are trying to choose between permanent and term life insurance, your needs and goals must be considered!

Underestimating Your Insurance Needs
You will need to decide how much death benefit you need. If you are just picking a number out of thin air, you run the risk of your beneficiaries coming up short later on! Consider your age, overall health, life expectancy, income, debts, and assets to determine how much coverage you should have. If you have young children and your spouse doesn’t work, you will need enough insurance to provide for them financially for the long-term.

Waiting Too Long To Buy
The sooner you buy life insurance, the better! It will also be easier on your wallet. Even if you are in relatively good health, you will still pay more for every year you put it off! Should you develop a serious illness or disease, you may struggle to get life insurance within your budget.

Skip the search through copious amounts of policies online – contact Mayer Insurance in Apple Valley, Minnesota for reliable and customized life insurance coverage!