| Life insurance isn't the world's most fun topic to | | | | Advice: Discuss with a financial advisor the amount of |
| cover...and as a result, many people ignore the subject | | | | coverage and type of plan that makes sense, and |
| altogether or even worse, go about funding insurance | | | | review your personal situation (a spouse who will be |
| policies all wrong. Here are the four biggest mistakes | | | | forced to cover a mortgage, for example) with him |
| that people make, with advice to avoid them. | | | | her to determine the proper policy. |
| 1. Mistake: Assuming that because you are young, | | | | 3. Mistake: Dismissing life insurance as "too expensive". |
| single, and healthy-you don't need insurance. | | | | Wrong Because: There are policies that are actually |
| Wrong Because: If you die with credit card bills, a car | | | | fairly reasonable, and it can be far more expensive in |
| payment, or with a mortgage payment, someone will | | | | terms of dollars and overall "hassle" to not have life |
| be forced to pay those bills...but a fairly inexpensive, | | | | insurance, in the event of your passing. For premiums |
| even modest policy would help a great deal in | | | | that can be very reasonable month-to-month, you'll |
| alleviating or covering those costs. | | | | have an ending payoff that can cover all your |
| Advice: Look into options for reasonably-priced life | | | | outstanding expenses and provide assistance to |
| insurance and consider that when you're "young and | | | | beneficiaries. |
| healthy", it's actually a great time to get in on a | | | | Advice: Talk to your advisor about different types of |
| policy-your rates will be favorable and can stay low, | | | | policies to determine what makes sense. |
| even as you get older. Twenty years after you've | | | | 4. Mistake: Skipping life insurance because "it's as bad |
| purchased a policy, you might find peers are less likely | | | | as buying a new car". |
| to get good rates, but you will still be insured, at a good | | | | Wrong Because: There are good resources out there |
| rate. | | | | for you to do some research online, so that you are |
| 2. Mistake: Thinking that since you don't have kids...or | | | | prepared. Online calculators, for example, help you |
| that since your kids are "grown"...you don't need life | | | | estimate your needs and provide |
| insurance. | | | | recommendations-which you can act on, over the |
| Wrong Because: Even if you don't have kids, your | | | | computer, or take with you to an advisor-many of |
| spouse will be faced with bills and expenses in the | | | | whom are thoughtful, well-informed resources who will |
| event of your passing, and to have to deal with grief | | | | help you with your planning. |
| AND the headache of a mortgage, ongoing expenses, | | | | Advice: Do some research online to be prepared and |
| and more can be too much. If there is someone who | | | | take into account your total financial picture as you |
| will be responsible for expenses, as in the "Mistake" | | | | make a plan for purchasing life insurance. |
| above, a modest policy will help. | | | | |