For Mark Roberts’ Use: Even though it’s a common purchase, life insurance is one of the most important financial decisions you will ever make. Just as you wouldn’t purchase a home or invest money without conducting some thorough research, you also shouldn’t select a life insurance policy without arming yourself with complete information. Avoid these common mistakes as you compare policies.

Don’t make assumptions. On average, people tend to imagine that life insurance costs about three times as much as it actually does. This might lead you to assume that life insurance protection is unaffordable for you. In reality, nearly everyone can afford a life insurance policy – and nearly everyone needs one!

Don’t rely upon your employer-provided policy. Many employers provide life insurance to their workers, but these policies can be subject to strict limitations (such as benefits only apply if you die as a result of your work duties). You could also lose your job at some point, or your employer could cancel the policy due to budget cuts. Purchase your own life insurance policy and you will be protected as long as you make the premium payments.

Don’t lie on your application. It can be tempting to lie on your life insurance application, in order to score a lower premium. But your insurer will probably catch you, because most of them double check with Medical Information Bureau reports to verify your information. Even if you don’t get caught, benefit claims are investigated before they are paid. That means you could pass away and your family wouldn’t receive your death benefits. They won’t receive a return of the premiums you paid, either.

Don’t choose the wrong beneficiary. What seems like a simple decision might become complicated for a variety of reasons, such as legal and tax regulations. Seek expert guidance when you establish your policy, to ensure that your benefit payout truly protects your loved ones.

Don’t forget to update your policy. Unfortunately, that policy you purchased years ago might not offer appropriate protection now. You should perform a new needs analysis every two to three years, or any time you need to make a change.

Don’t underestimate your needs. The point of life insurance is to protect your loved ones in the event of your death. So don’t choose a benefit amount or a policy type without performing a needs analysis. Give us a call, and we can help you determine your needs, and help you choose a policy that is right for your family.