Term life insurance is a great option for protecting your loved ones and helping provide financial security. But some mistakes that people make when getting term life insurance can cost them in the long run. Here are five common mistakes you should try to avoid when getting term life insurance.
1. Not Knowing What Term Life Insurance Is
Before applying for any type of life insurance policy, it’s important to understand what it covers and how much coverage you need. What is term life insurance? It’s a policy that pays a lump sum if the insured individual dies within the specified period of time (the “term”). These policies tend to be relatively less expensive since they only cover a certain about of time.
2. Not Getting Enough Insurance Coverage
When determining how much insurance coverage you need, you should consider your current financial obligations, future goals, and expectations for your family’s needs. If the death benefit isn’t enough to help cover any outstanding debts or help provide long-term security for your family, it might be worth looking into additional insurance options.
3. Failing to Consider Riders
Riders are additional options that can be added to a term life insurance policy to help provide extra protection. Some of these can help if the insured becomes disabled and even allow beneficiaries to receive help before the insured individual passes away. Another option allows policyholders to increase the coverage amount without further medical examinations.
4. Not Shopping Around for Term Life Insurance Rates
Insurance companies offer different rates for term life insurance policies, so it pays to shop around and compare prices. Keep in mind that other factors may influence your premiums, such as your age and health status. However, most insurers will provide a quote within minutes based on the information you give them.
5. Not Taking Advantage of Group Rates
Many employers offer group rates on term life insurance policies, which can help save you money in the long run. Check with your employer or union to see if you can take advantage of any group life insurance plans.
By avoiding these five common mistakes, you can help ensure you’re getting the most out of your term life insurance policy and protecting your loved ones for years to come. Armed with this knowledge, you can confidently compare term life insurance rates and make an informed decision about which company is best suited to meet your needs.
Coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage is underwritten by American Family Life Assurance Company of New York.
68000 series: In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies:
ICC1368100, ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68100-A68400.
In New York, NY68100-NY68400. B61000 series: In Arkansas, Idaho, Oklahoma, Oregon,
Pennsylvania, Texas, & Virginia, Policies: ICC18B61JWO & ICC18B61JTO. In Virginia, Policies ICC0965JTO & ICC0965JWO. B60000 series: In Arkansas, Idaho, Oklahoma,
Pennsylvania, Texas, & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200,
ICC18B60300, & ICC18B60400. Q60000 series: Whole: In Arkansas, Policy Q60100CAR. In
Delaware, Policy Q60200M. In Idaho Policy Q60100CID. In Oklahoma, Policy Q60100COK. In
Oregon, Policy Q60100COR. In Texas, Policy Q60100CTX. Q60000 series: Term: In Delaware,
Policies Q60200C. In Arkansas, Idaho, Oklahoma, Oregon, Texas, Policies ICC18Q60200C, ICC18Q60300C, ICC18Q60400C.
This is a brief product overview only. Coverage may not be available in all states, including but not limited to DE, ID, NJ, NM, NY or VA. Benefits/premium rates may vary based on state and plan levels. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations and exclusions. For complete details, including availability and costs, please contact your local Aflac agent. Content within this ar cle is provided for general informa onal purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situa on. Employers, employees, and other individuals should contact their own advisers about their situa ons. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.??
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