Happy Halloween: Don’t Let These Four Life Insurance Mistakes Haunt You
The spectre of Life Insurance decisions gone wrong can come back to haunt those that made crucial – yet easily avoidable – mistakes with their cover.
You could be left worrying about more than whether you should eat all the leftover lollies if you don’t get your Life Insurance cover right. Below are some of the most common mistakes people make when taking out Life Cover, not the least of which is neglecting to take it out at all.
1. Delaying taking out cover
Too many people make the mistake of putting off taking out Life Insurance, reasoning that they are young and therefore unlikely to die anytime soon. But by taking out cover while you are still young and in good health, you can benefit from beginning your cover with lower premiums.
2. Poor health choices
As well as decreasing your quality of life, poor health choices like smoking, lack of exercise, heavy drinking, overeating and drug use can all drive up your Life Insurance premiums. If you have a higher risk of dying sooner, you will be saddled with a higher premium.
3. Not having enough Insurance
Underinsurance is common for many Australians. While insuring for a lesser amount might prove more cost effective in the short term, it could leave your family in the lurch if they are unable to meet their cost of living in the event of your death. Calculate how much your family really needs before deciding on an insured amount.
4. Failing to keep your cover up to date
Once you take out a Life Insurance you need to make sure you keep it up to date and don’t just tuck it away in a drawer to gather dust. Make sure your beneficiary nominations are up to date as your situation changes, through major life events such as marriage, divorce, the death of a life partner, or the birth of your children.
Happy Halloween from the NobleOak team.