Purchasing life insurance is one of the most important decisions you’ll ever make to protect your family’s financial future. So make sure you do it right the first time to avoid financial disaster.
Wheeling, IL (PRWEB) March 1, 2010
AccuQuote, a leader in providing term life insurance quotes to people across the United States, reveals the most common life insurance mistakes. The multi-carrier life insurance brokerage firm encourages consumers to learn what not to do when making a decision that will affect their family’s financial future.
“Before making the right decision, it’s important to be aware of the wrong ones,” says Byron Udell, founder and CEO of AccuQuote. “The fact is that millions of people in the United States are uninsured, and even worse, most of the people that do have some kind of life insurance coverage don’t have enough. By realizing the proper need and value of life insurance, you’ll be sure to find adequate coverage for your family and avoid devastating mistakes.”
AccuQuote reveals the most common life insurance mistakes to avoid when shopping for and purchasing life insurance coverage:
- Avoiding the conversation – “Because life insurance isn’t mandatory like car and homeowner’s insurance policies are in some states, it’s a topic that’s easily avoided,” says Udell. “But the fact is, it’s important to discuss your family’s life insurance needs so your loved ones are financially prepared in the case of an unexpected death.”
- Relying on rules of thumb – “Financial experts recommend having 10 to 15 times your annual salary in life insurance coverage,” says Udell. “However, life insurance is not a one-size-fits-all product because everyone’s family situations are different. For example, a single person with no dependents won’t need as much coverage as someone who is married with three young children. A life insurance needs calculator can help you determine how much life insurance coverage is enough.”
- Forgetting to shop around – Before making a significant purchase, most consumers shop the market for competitive rates. “It’s the same with life insurance,” says Udell. “Before making a long-term financial commitment, be sure you’ve received the best value for your coverage. It’s easy to do this by shopping at a multi-carrier life insurance brokerage firm, like AccuQuote, that compares hundreds of policies among top-rated life insurance companies. This is the best alternative to purchasing a policy from a local agent who may represent only one or two companies.”
- Failing to review life insurance needs regularly – Financial experts encourage consumers to review their life insurance needs regularly or when a major life event occurs, such as getting married, purchasing a new home or having a baby. “When a major life event takes place, it usually triggers the need to update your existing life insurance policy,” says Udell. “For example, with the birth of a new child you’ll probably need to add more coverage to your current amount, whereas a divorce or paying off your mortgage may allow you to decrease your coverage.”
- Canceling an existing policy until a new one is in force – “In force is the industry language for active, meaning if you died today, your beneficiaries would receive the proceeds of your life insurance policy,” says Udell. “If you need to change your existing policy, which is common since term life insurance rates are near record lows, first be sure that a new policy is in force. Otherwise, you risk leaving your family unprotected.”
“Purchasing life insurance is one of the most important decisions you’ll ever make to protect your family’s financial future,” says Udell. “So make sure you do it right the first time to avoid financial disaster.”
AccuQuote helps consumers find the best values in term life insurance by combining instant online life insurance quotes with the personal service of unbiased life insurance professionals that can help answer questions, identify important issues, and make meaningful recommendations. The company offers consumers an extensive selection of life insurance options, including term life, whole life, and universal life, as well as selected annuities. The website has many handy insurance tools, including a life insurance needs calculator to help you figure out how much to buy, a glossary that explains industry terminology, a collection of articles that cover the basics about life insurance, and a blog which answer many questions about life insurance. For additional information or to get quotes for cheap term life insurance, please call 1-888-314-4455.