The cost of life insurance is minimal when you think about all the benefits it can provide. Life insurance protection is a particularly wise investment for anyone with children or dependents. For example, AARP life insurance offers affordable protection for families across the country and is one of the best options for anyone needing to purchase life insurance. It is essential to take steps now to ensure you have the protection you need during your lifetime:
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1. Relying too much on employer coverage
It is tempting to rely on the insurance benefits your employer offers. However, your employer’s plan may not suit your needs. Consider shopping around for the best coverage options that will provide you with the most comprehensive protection and benefits at a reasonable price. Plus, having independent life insurance means that you will have the freedom to leave your job without having to worry about losing your coverage.
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2. Hiding information from the insurance company
If you are buying life insurance, it is essential to be as open and honest as possible with the insurance company. You need to provide them with all the information they request to help them decide whether or not to offer you coverage and what type of policy to offer you. While there may be certain items on your application that you don’t want the company to know about, such as a pre-existing condition, it is ultimately worse, and more expensive, to be caught lying than it is to be upfront about your issues.
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3. Being unprepared for your medical exam
You may already know that a medical exam is often required before you are given a life insurance policy. Before taking that exam, it is best to eat nutritious food and get plenty of sleep beforehand. You want to be feeling good and healthy during your exam—if you’re lucky, your healthy choices will be reflected in your results and in your insurance policy. It’s also essential to make sure you bring all the necessary paperwork, including medical records and test results.
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4. Not shopping around for the best rates
The best way to avoid this mistake is to look at several providers. Rates will vary widely between insurance companies, so be sure to do some comparison shopping before making your ultimate decision. Be sure to ask for quotes from as many different providers as possible. If you’re not sure where to start, check out your state’s department of insurance website or even local, family-owned insurance agents you trust.
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5. Buying too little coverage
Buying too little coverage can be a costly mistake. This is especially true for people who are new to buying life insurance. One way to ensure you’re getting the coverage you want is to pick a higher premium policy but a lower death benefit. If your children receive financial help from your life insurance policy, it may be worth paying more upfront to have that help available upon your death.
