Life Insurance Mistakes

Investing in the right life insurance policy is the best way to ensure that your loved ones are financially protected after you are gone. However, there are some situations that can cause your loved ones to not benefit from your policy. Make sure to avoid these common life insurance mistakes to ensure that your beneficiaries get the payout they deserve.

• Lying – if you lie on your life insurance application, your insurance company can choose to deny your policy after you are gone. The questions that are asked on the application are meant to help your insurance provider decide on the cost of your policy, and if you lie, your policy can be denied.
• Missing payments – while most insurance providers offer a grace period for payments, if you fail to pay your premiums, it can cause your policy to lapse. If you did not pay your premiums for only a short amount of time, you may be able to reinstate the policy. However, if you allow the policy to go unpaid for a long time, it will not provide any payout to your beneficiaries when you are gone.
• Keeping it secret – if your loved ones do not know that you have a life insurance policy, they cannot collect the payout. While there are some steps that life insurance providers can take to ensure that all life insurance policies are paid out, they are not guaranteed. Make sure at least one loved one knows about your life insurance policy, including the life insurance provider and policy number.

For all of your life insurance policy needs and to ensure that you have the right amount of coverage, contact the insurance professionals at Michelle Lim Insurance Services Insurance in Alhambra, California. We will work with you to ensure that you invest in the right policy, all at the right price.