Biggest Life Insurance Mistakes (Part 1 of 3)
Part 1 of 3
This blog post is part of a three part series that will be posted over the next three weeks.
For most people, buying life insurance is difficult enough, even when it’s done right. But when it is done with only one eye open, or haphazardly just to ‘get it over with’, mistakes are very common, and they can be very expensive. Without question, life insurance is one of the most important purchases people make in their lifetimes, yet many people are ill-equipped to make informed decisions. Consequently, many life insurance owners express doubt, or even remorse, over their purchase. By avoiding some of the biggest mistakes that people make when buying life insurance, you can be more assured of your purchase and enjoy its peace of mind.
Mistake #1 – Failing to Recognize the Real Reasons for Life Insurance
You know you need life insurance, but do you understand your real reasons for owning it? Yes, it can pay off your family’s debt, perhaps provide a post-secondary education for your children, and it will be a much needed source of income for your spouse when your income stops. Those are the practical needs for life insurance, which, as discussed in the next section, are vitally important to the buying process. But, unless the purpose of life insurance is understood at an emotional level, it will remain in your mind as a “should-have” as opposed to a “must-have” which makes it seem somewhat expendable.
From your family’s perspective, the purchase of life insurance is one of the most unselfish acts of love and devotion that you can leave behind. As the provider for a family, life insurance is the one thing that you can buy that will give you a sense of security and the absolute peace of mind knowing that your family will not want for the things that they need to live the life you envision for them, after you pass away.
Stay tuned next week for Mistake #2