The purpose of life insurance is to ensure that your family is protected in the event that something happens to you. It is meant to provide for your family after you’re gone, giving you and your family peace of mind by knowing that they will be cared for upon your passing. Unfortunately, there are many mistakes that people make when doing their health insurance, possibly resulting in the denial of an insurance claim. The importance of life insurance is undeniable, so make sure you avoid these mistakes when it comes to protecting your family.
1. Don’t Lie
Lying on your insurance application is a surefire way to get you in trouble. Many people lie about things like their tobacco use or traffic violations because they know these things can be unforgiving when it comes to the insurance rate you get. However, most insurance companies fact check your medical claims, often resulting in denied coverage for those who lie.
2. Avoid Exotic Vacations
If you want to travel to a country riddled with diseases or go on a safari known for its danger, it may be best to put those dreams on hold. The general rule is to wait at least two years after you have secured your insurance policy. If you don’t, let’s just say your life insurance company won’t be too happy.
3. Older is not always wiser
Waiting to buy life insurance until you are older is generally not a good idea. Life insurance considers age when calculating its rates, and the older you are, the higher your rate will usually be. You also can never be sure what your health will be like from day to day, so it’s a good idea to get your insurance rate locked in when you’re young and healthy.
4. Don’t skimp when Purchasing Life Insurance
Buying too little life insurance is way too common. Not having adequate insurance will mean a hard financial struggle for your family after your death. There is no set in stone rule to follow; you just need to take a deep look at your specific situation. Make sure your family has enough money to pay off your debts and still have some left over to live off of.
5. Stay up to Date with beneficiary Forms
There have been a decent amount of cases throughout the country where a couple gets divorced and get married to someone else later on. However, they never update their beneficiary form, and when they die, the money goes to the ex-wife instead of the recent one. You can easily avoid this by updating your beneficiary forms regularly, making sure the correct spouse or children get the money you intend for them.
Life insurance may seem like a pain, but it’s an important step in making sure your family is properly protected in the event that you pass away. Make sure you are properly insured and if not, don’t wait any longer to get it done! Your health and life are never guaranteed.
Stephanie Wilmsmeyer is a life insurance agent for State Farm in Columbia, Mo. Stephanie has helped several families secure their financial futures for when loved ones pass away.