Guides and Info

Making Life Insurance Mistakes

Life Insurance Mistakes

Have You Made One Of These Life Insurance Mistakes?

If you have started shopping around looking for Life Insurance, you want to make sure that you get it right. At Life Insurance Cover we take a look at some the most common Life Insurance mistakes. Including how you can avoid them.

Getting you and your family protected with the best Life Insurance policy for your circumstances can seem a like a potential mine field. Because of the long term commitment which could potentially last for decades. You want to make sure that a policy does what you need it to. Trying to navigate the potential tricks, traps or pitfalls of Life Insurance. Can cause many to deal with it later on.

Don’t panic, at Life Insurance Cover we have an extensive collection of guides. We will run through many of the Life Insurance Mistakes in this post. This guide will help you to consider the cover that works for you and your family.

Choosing The Wrong Type Of Protection

Because there is a wide variety of Life Insurance products. Each designed to match the individual needs of someone who needs Life Insurance protection. It can be quite easy to make mistakes on coverage. Two of the most common types of protection are Level Term and Decreasing Term Life. Each type does a very different job. A Level term policy could help protect your family long enough for your children to grow up. Whilst a Decreasing Term Life policy is usually purchased to run alongside a mortgage.

Take a look at our dedicated pages to Level Term Life Insurance and Decreasing Term Life Insurance to help find the best policy type for you.

Not Insuring For Long Enough

All Life Insurance policies can be created to each person’s individual needs which can include the length of the policy. It is important for you to decide on what the policy is protecting. And for how long it needs to run for. Make sure your Life Insurance protection will last for as long as you need it. A common reason for buying a Term Life Insurance policy. Is to ensure all of your young children can attend university. If you decided to have a policy only insuring for 20 years. It could potentially leave a shortfall if you pass away in the final years of education.

During a person’s lifetime it is impossible to predict to future, including any potential obstacles or curve balls. Therefore it is very important to prepare for the worst case scenario and protect those who rely on you by creating a safety net for them.

Are All Life Insurers Are The Same?

Are All Life Insurers Are The Same?

Fortunately all Life Insurance companies are not the same and offer very different types of protection. Each different provider has their own market leading policies, some will offer health incentives, others offer cover only to people with medical conditions. This means as a customer you can have very different experiences. Because each insurer is different, it is important to use a Life Insurance Broker to make sure that you don’t make a mistake when buying Life Insurance. By using an FCA regulated broker, like Life Insurance Cover the power is completely in each customer’s hands when it comes to which policy you choose.

If a Life insurer has declined your application for protection, don’t let that be the end of your search for Life Insurance. Other insurers have different acceptance criteria, also you may need a specialist policy for your situation. If you are unsure why a policy may have been declined for cover, check out our helpful guide.

If you have made the important decision to get Life Insurance, do not let one set back impact your choice.

Confusing Life Cover With Other Insurance Products

If you have already taken the first step in protecting the long term financial future for your family. It is very important to make sure you know what the policy will and will not do. Many Life Insurance mistakes are made when people think that Life Insurance is the same as Critical Illness or Income Protection. At Life Insurance Cover we have an extensive guide on Critical Illness and reviewed the many differences between Life Cover and Income Protection previously.

Each different type of protection Insurance all have their own unique uses and purpose, all of which are beneficial for a variety of reasons.

Please make sure that when you choose Life Insurance for your peace of mind and family that it does the job you need your policy to do.

Not Reviewing Your Protection Policy

Many Life Insurance mistakes occur because people do not review their policies, because each person’s circumstances change over time. The very first important step is to first put a Life Insurance policy in place to protect your family and loved ones. Another important milestone is to review it every few years, to make sure it still provides the protection you need. What may have been suitable for you when you first bought your policy may not be suitable for your current or future circumstances? Because Life Insurance is a long term policy it can be easy to just set it up and forget about it.

However, by applying for new additional Life Insurance policy, or just checking whether it’s possible to adjust your current Life cover. You could not only make small changes to a policy so it’s working as hard as possible, you could also save money in the long term. If you have made lifestyle changes like giving up smoking for at least a year. It is possible that you could lower your monthly premiums by letting your insurer know.

Not Insuring For The Future

When beginning the search for Life Insurance protection it is important to consider the amount of cover that suits your family and the lifestyle they need for the future. When looking at the common lifestyle choices, the most common being household outgoings, further education or creating a legacy for the future. By working out what the potential future costs for your family could be, is a very good start point for the level of cover you need.

Life Insurance Mistakes

Forgetting Who May Rely On You

A Life Insurance policy essentially is not for your benefit, it is however a policy that will look after and protect those you leave behind. Your partner and children are two of the most obvious people you would typically expect to rely on you both emotionally and financially. But this list of people who rely on you is not that limited. By preparing for the long term and others who may rely on you in the future, will also need to be taken into account, including grandchildren or other members of your family.

Being potentially outlived by your parents is enough of an emotional distress, but if you were no longer there to care for them in their old age. Which is another important reason to make a provision for them to be looked after in your Life Insurance policy.

Reading The Small Print

As all adult will admit to, reading the small print is not very high on our priority list. Many instruction manuals and policy documents remain safely in their envelopes, never seen by the human eye. However, at Life Insurance Cover we cannot stress enough the importance of reading your policy wording. The reason for doing so, will make sure that you have a policy that does exactly what you need it to do.  

Within our guide for the importance of reading the small print, we encourage people to discuss it with either a FCA broker like Life Insurance Cover or with someone you trust. Each policy is different and if you have questions about your policy, it is important to get the answers you need.

Assuming You Can’t Get Life Insurance

If you are looking Life Insurance and think that it is not an option for you because of some circumstances which may not apply to you. Your family and loved ones will thank you further down the line for making a free protection enquiry.

But what if I can’t afford it? At Life Insurance Cover It costs nothing to get a free quick quote and find out. Have an ongoing medical condition? There could be policy on standard term or maybe a specialist insurer who can help. Have a high risk job or take part in a dangerous hobby? We have arranged Life Insurance policies for people who have similar circumstances to you and searching all of the Life Insurers for you.

Withholding The Truth On Your Application

One of the many common mistakes that people make when they apply for a policy, is the temptation not to declare any potential issues. Like the amount of time you have not smoked, not declared a pre-existing medical condition. Although you may initially get a cheaper monthly premium, if an insurer doesn’t check your medical history. In the long term an insurer will write to your GP to access your medical records, or even ask you to attend a medical examination.

If it is found that you have potentially withheld an important detail about your health or lifestyle. A claim payment could be reduced or even declined completely. We always encourage our customers and website visitors to be completely honest with your insurer. By answering any questions they ask you as truthfully as you can will offer the best outcome for you in the long run.

Forgetting The Costs To Pay After You Pass Away

By taking the first important step in protecting the future for your family, will inevitably include any costs for your funeral. The cost of which may fall to your family and loved ones, depending on how much you leave to them. By making provision for these costs in your Life Insurance policy will mean more of the financial safety net goes to your family and not to cover funeral costs. Remember to make provision for the costs, including:

Your burial or cremation.

Settling any potential debts.

Childcare, and your children’s further education.

Mortgage payments.

Maintaining your family’s lifestyle, including into retirement.

Get The Right Life Insurance At The Best Price

For the team here at Life Insurance Cover, we take the time to understand your needs and budget. Each family’s needs are different and we search all of the companies in the UK to find the right policy at the best price. Our friendly team of experts can take you through the easy steps to getting the right cover for you. We will help you not to make Life Insurance Mistakes when protecting your family. Get a free online quote today to take the first steps to financially protecting your family and loved ones.