Three Things to Avoid When Buying Life Insurance Online
Even if you’re under 30 years old, it’s never too early to think about life insurance. The right life insurance policy gives you and your loved ones that extra layer of financial security. In addition to covering final resting costs, life insurance can also be sold, if the need ever arises. But as with any financial transaction online, you need to know what to avoid. Here are three things you should never do when buying life insurance coverage online.
Buying the Wrong Coverage
You may think it’s next to impossible to buy the wrong type of coverage online. However, it’s one of the most common mistakes people make, especially for those purchasing life insurance for the first time. Most people make this mistake simply due to a lack of knowledge. There isn’t a single form of life insurance that’s best for everyone. There are actually two; permanent and term.
Permanent, or whole, life insurance is a policy that lasts upon the policyholder’s death. On the other hand, term life insurance is a temporary policy that can last up as long as 30 years. While both forms of coverage serve the same purpose, they work differently. You cannot cash in term life insurance. It also does not accrue over time. If you pass away, your beneficiaries will receive a set amount of money; however, you cannot sell this type of coverage. In order to ensure you buy the right form of insurance, please take the time to read what each policy has to offer. Carefully consider your needs and be realistic that certain aspects of your life can change.
Withholding Important Information
As you continue the process of applying for life coverage, you are going to be asked all sorts of questions. These questions include your medical history, where you work, lifestyle habits, your marital status, how many children you have and even what hobbies you partake in. This information is how the agent gauges your eligibility for coverage and how much you’re able to receive. Unfortunately, however, some people keep certain information, like their medical history, to themselves. It is important to answer each and every question truthfully because what you say impacts the coverage. Being dishonest can greatly decrease the amount on the policy or you’ll be denied entirely. Also, the insurance provider will verify this information to make sure you’re not embellishing.
Something else being honest can do for you is that it also makes it easier to sell your life insurance policy. In some cases, people only get this insurance in the event things take a turn for the worst, like having a medical condition. However, they may find themselves not needing the policy anymore, but don’t want to lose the money attached to it. Be sure to contact a licensed life settlement company to help you in selling your policy.
Not Purchasing Enough Insurance
It’s possible to underestimate your needs, which is why you may not purchase the amount of coverage you need. Or, it could be because you don’t have a lot of extra money to pay the monthly premium. However, it’s important to purchase the premium you can afford now. Whether you get married or have a higher income, you can always upgrade later. Finding the right policy doesn’t need to be stressful. Take the time to weigh the pros and cons of each type and consider both your current and possible future needs as well.