If you’re shopping for life insurance online, you are not alone. Many adults search for the best companies, policies, and coverage via online sellers. In fact, nearly all the world’s biggest and best carriers maintain online portals on which applicants can fill out forms, make payments, and check on the status of their policies at any time of the day or night. But if you prefer the online approach instead of dealing with an agent in person, beware of the common errors people make.
In addition to not checking out the backgrounds of the sellers, buyers sometimes cancel an old policy without finding out its true worth. Another major error is selecting a company because it offers the lowest premiums. Rarely are the cheapest products the best. Finally, be careful to get good advice, preferably from a licensed agent, about the right amount of coverage based on your age, lifestyle, income, and other pertinent factors. It’s a sad fact that far too many people purchase either too much or too little insurance.
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Not Vetting Carriers
There are more than 100 carriers who sell policies online, but only about a dozen of them are among the most highly rated organizations. It’s wise to stick with well-known and well-established carriers. Check their credentials, read reviews, call their customer service line, and spend time perusing their websites. Remember that those who buy new cars routinely spend many hours doing research and checking out features, payment plans, safety records, and more. Even though you have already determined how to buy it, you should still try to be as diligent as the aforementioned example when it comes to your insurance needs.
Canceling Coverage When You Could Sell the Policy
There are many misconceptions about canceling policies. In many cases, people who feel they no longer need coverage simply stop making payments and cancel. However, that’s often not a wise way to go. There are ways to receive more than your cash surrender value, which is all you get when you cancel. Instead, why not learn the smart way to make a cancellation so you can receive the maximum payout. Start by reviewing a guide on the ins and outs of canceling insurance policies. It’s a good idea to read through the guide before canceling a life insurance policy that you no longer want or need.
Opting for the Lowest Premiums
There are few product lines where the cheapest item is the best one to buy. That’s also true when it comes time to insure your life. Whatever kind of policy you end up selecting, only include the premium amount as one of many factors in your final decision. Even if you are living paycheck to paycheck, look at the big picture, which includes the company’s rating, how long it’s been in business, and whether it has a good reputation among its customers.
Getting the Wrong Amount of Coverage
Unless you’re a financial professional, it’s tough to figure out how much coverage you should buy for yourself. There are rules of thumb about multiples of income, but those are just handy estimates. To avoid buying too much or too little coverage, speak with an agent who can give you an honest figure.
