The purpose of life insurance is to help our loved ones secure a sound financial future even after we pass away. Not all life insurance policies are created equally, however, and there are a few common mistakes you should be sure to avoid when selecting your own policy.
Listing Your Child as a Beneficiary
A life insurance policy can offer your children many benefits in the event that you pass away, but listing them as a beneficiary may delay those benefits. Insurance companies simply cannot give minors, individuals under the age of 18, large sums of money, so most will not deliver the assets until the child reaches adulthood. Instead, name a trusted adult as the beneficiary or set up a trust for your spouse and children, and name the trust as the recipient of your life insurance proceeds.
Waiting Until It’s Too Late
Securing a life insurance policy that meets your needs isn’t something we recommend putting on the backburner. Rather than waiting for real-life events to take place and remind you of its importance, we recommend choosing a policy as soon as you reasonably can. This way, you can guarantee your family will be protected even if unforeseen circumstances take place. Choosing a life insurance policy earlier in life is advisable since rates only rise as we get older and become more susceptible to health conditions.
Not Shopping Around Before Committing
As with any type of insurance, or really any purchase in general, you should always shop around before selecting a life insurance policy. You may be surprised to find that quotes can vary widely from company to company for very similar coverage. Choosing a policy that meets your needs and your budget should be your ultimate goal when trying to find the perfect policy.
Choose Insurance Coverage that Works for You at Freedom Insurance
We offer comprehensive, customized coverage from numerous major insurance carriers and make it easier than ever to find affordable policies that are exactly what you need. We have been serving clients throughout the greater Howard County and Carroll County areas since 1979, and we look forward to helping you and your family thrive. Get in touch today by calling (410) 795-2000 or requesting a free quote.