When shopping for life insurance, there are several costly mistakes that you need to avoid to ensure that you get the best policy at the most affordable price. One of the most common mistakes is failing to shop around for quotes from different insurers. By doing so, you may end up paying more than you should for your policy. Another mistake is not understanding the different types of life insurance and their features. For example, term life insurance is often cheaper than permanent life insurance, but it only provides coverage for a specified period.
1) Relying on Group Life Insurance from an Employer
Group life insurance provided by an employer can be a valuable benefit for employees. Group life insurance policies typically have coverage limits that may not be sufficient for all employees. Consider whether the coverage amount is adequate for your needs and whether additional coverage is necessary.Group life insurance coverage typically ends when an employee leaves the company. Some policies may offer the option to convert to an individual policy, but it may be more expensive than purchasing an individual policy outright.