Insufficient coverage
One of the common mistakes is choosing a policy with insufficient coverage. Before choosing a policy, consider your family's financial needs, including expenses for your children's education, paying off debts and replacing your loss of income. Keep in mind that your situation may change over time, so review your insurance policy periodically.
Wrong choice of insurance type
There are two main types of life insurance - term life insurance and whole life insurance. The mistake is that people may choose the wrong type of insurance. For example, if you only need coverage for a specific period (such as while you're paying off your mortgage), term life insurance may be a more suitable option.
Choosing a company
Before entering into an insurance contract, thoroughly explore the market and research the insurance company. Check its ratings, customer reviews and stability. This will help you avoid a situation where the company cannot meet its obligations.
Withholding information when application filing
Providing inaccurate or incomplete information when applying for insurance can lead to problems in the future. It is crucial to be honest when answering your insurer's questions. Otherwise, if an insured event occurs, the problems with insurance payment may arise.
Source: https://www.cnbc.com/select/most-common-life-insurance-mistakes/
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