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What mistakes can be made when buying a life insurance policy

Forbes told what to consider when buying a life insurance policy, and what mistakes we should avoid.
What mistakes can be made when buying a life insurance policy

"A life insurance policy is an important part of the financial plan that you will live on for decades," said Erin Ardleigh, founder and president of Dynama Insurance. - Take time to research, understand and compare multiple products. Otherwise, a hasty purchase may result in lost income."

Another common mistake Americans make is relying on employer insurance. Firstly, the death benefit under such a policy is very small, and this amount is not always enough for a funeral. Besides, the collective life insurance policies are lost as soon as a person changes jobs.

The third common mistake is misleading the insurer. By cheating on a life insurance company, a person deprives himself of the right to future payments. Hidden information usually becomes known to LIC employees, who can easily refuse payments when an insured event occurs. It is important to always answer all questions honestly. Insurers will verify the information provided by asking you for permission to obtain medical records and prescription drug history, by requiring you to undergo a medical examination.

The fourth mistake is getting a too small coverage. In order to calculate the amount of future payments, consider what financial obligations should be covered in case of insurance event.

But, the biggest mistake is to postpone the insurance policy purchase. “I know people who have been planning to buy life insurance for years, but have not yet become policy holders,” concluded the founder and president of Dynama Insurance.

Source: https://www.forbes.com/advisor/life-insurance/mistakes-when-buying/

Photos are from open sources.

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