Five mistakes to avoid if a person buys a term life insurance plan are as follows:
Low coverage
The most common mistake when buying a life insurance policy is saving on something important. Experts recommend buying policies that cover 10 to 12 times a person's monthly income; otherwise, your loved ones will lack funds.
Postponing the purchase of an insurance policy
Waiting too long to purchase coverage is also considered a big mistake and should be avoided. The older the person, the more expensive is the policy.
Choosing a too short coverage period
Short-term policies are cheaper, but saving on that can backfire on the owner. After all, you will have to buy a new one. The duration of the insurance coverage should last until the children begin to live on their own.
Buying a policy with a too big coverage
Sometimes insurance agents offer their clients to include options such as “critical illness” or “temporary non-payment of insurance premiums” in the policy. However, these clauses increase the cost of the final product dramatically.
Lack of regular review of conditions
Insureds must review existing insurance coverage annually. This will help the person to make sure that the policy corresponds to the changed life conditions.
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