Life insurance is a vital financial resource that protects individuals, families, and businesses alike in the event of an untimely death. Unfortunately, many people make costly mistakes when it comes to life insurance coverage due to a lack of understanding about policy details, provider rules, and individual needs. To help you avoid these common issues and ensure that you have the best coverage available for your unique circumstances, this post by William Schantz will provide an overview of important things to be mindful of when selecting life insurance policies.
William Schantz Lists Costly Life Insurance Mistakes To Avoid
1. Not Understanding the Different Types of Life Insurance:
One of the most costly mistakes people make when it comes to life insurance is not understanding the different types available, says William Schantz. For example, term and permanent life insurance are two very different products that offer different death benefits and cost structures. Term life insurance offers a set amount of coverage for a specific period, while permanent policies like whole and universal life provide lifelong protection with an investment component. It’s important to carefully consider your needs and determine which type best meets them before making any decisions – otherwise, you could be stuck with an expensive policy that doesn’t fit your needs or budget. According to LIMRA, almost half of Americans don’t know what type of life insurance they have, and only 1 in 5 are permanent policy.
2. Not Shopping Around: According to William Schantz, another mistake people make when it comes to life insurance is not shopping around for the best rate. Oftentimes, people buy a policy from the first company they speak with – but this could mean you’re missing out on savings and better coverage elsewhere. It pays to get quotes from multiple companies so you can compare them side by side and choose the best option that fits your budget. According to LIMRA, millions of Americans miss out on potential savings by not shopping around for life insurance coverage every 2 to 3 years.
Statistical Data Points:
1. LIMRA estimates that almost half of Americans don’t know what type of life insurance they have.
2. LIMRA’s survey also found that millions of Americans miss out on potential savings by not shopping around for life insurance coverage every 2 to 3 years.
3. The Insurance Information Institute estimates that almost one-third of people don’t have life insurance because they think it costs too much.
4. The National Association of Insurance Commissioners points out that 6 in 10 life insurance policies are outdated and do not reflect the policyholder’s current situation.
Real-Life Example: A married couple with two children may need to increase their coverage as their family grows and evolves over time, such as adding more children or a spouse losing their job and no longer having an income. Without regularly reviewing the policy, they could be leaving their loved ones financially vulnerable when they pass away. It’s important to review life insurance regularly and make adjustments as necessary.
William Schantz’s Concluding Thoughts
By avoiding these common mistakes, says William Schantz, you can ensure that your life insurance policy meets your needs and provides the protection your family deserves. Taking some time to do research and review your policy regularly will help you make an informed decision about the type of coverage you want for yourself and those you love. This can save a great deal of stress, worry, and money in the long run.