Living without life insurance has left over 45% of Americans in debt traps. Life insurance provides financial support to your loved ones in the event of your demise. In most cases, life insurance coverage is used to settle personal debts and mortgages. When the remaining benefits can go to your chosen dependants.
If you are planning to take up life insurance, avoid making the following mistakes:

1. Not comparing rates
Not shopping around for the best rates could lead to money loss and frustration. Identify how much coverage you need, the type of policy you want to buy, and how long you need the coverage. Take your time to identify the company with a package that meets your needs. You’ll save money when you opt for a company with reasonable rates. You will also have an easy time making your claims as long as you deal with the company with the best rates.

2. Buying too little coverage
Underestimating your life insurance needs could result in you buying too little coverage. 75% of people who purchase life insurance don’t buy enough coverage. You’ll need to consider a few elements when calculating how much you should purchase. Buying enough coverage is a guarantee that your loved ones will manage to keep their assets. They will meet their daily and long-term expenses and settle their final expenses. With a good life insurance investment left behind, the loved ones have a chance to invest. You shouldn’t buy too much also. Buy enough to avoid paying expensive premiums that would result in you using all your income.

3. Relying only on employer coverage
Over 180 million Americans rely on employer-sponsored insurance. Relying too much on employer coverage is not be enough in several cases. Employers aim to cut costs by providing low coverage insurance policies. Employers’ coverage ends once you stop working with them. As you enjoy your employer’s insurance coverage, proceed and buy your life insurance. Personal life insurance guarantees you access to medical care regardless of the charges.

4. Hiding information from the insurance provider
Insurance companies ask for your date of birth and social security number to confirm your identity, they also may ask for your health history. Hiding facts from your insurance company will subject you to low premiums. At other times it may result in claim rejection. Criminal penalties may also be a result of being dishonest with your insurer. Being truthful with your insurance company helps in protecting your assets. You will also have an easier time when making claims. Insurance professionals find it easy to help with genuine personal information when necessary.

5. Being unprepared for your medical exam
Being unprepared for your medical exam results in challenges during the purchase proces. An insurance medical exam is used to determine your premiums. Before taking a life insurance health exam, ensure your medical records are on hand. Being in good health will help you save money. It is cheaper for a healthy person to get life insurance coverage and lower monthly premiums.

Don’t settle for cheap insurance rates. Compare the rates with the annual premium. Focus on getting a reasonable rate and at the same time enjoy the annual premium.