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Mistakes regarding life Insurance
and How You Can Avoid Them.

1. Procrastinating Or Waiting To Obtain Coverage
Accidents and unexpected deaths aren’t planned and can happen at any time. Delaying coverage leaves your loved ones and assets vulnerable. Life insurance premiums increase as you get older, so putting off coverage means it can be considerably more expensive if you wait. If your health declines, you may have to pay even more or find that you are unable to get coverage at all.

How To Avoid This Mistake – You’ll get more value for your life insurance dollar when you’re younger and in better health. With EasyTerm, you can lock in a premium that is guaranteed not to increase for 10 or 20 years.

2. Purchasing Too Little Coverage.
Deciding how much coverage you need can be difficult and unfortunately some people discover too late that the cash benefit they planned on didn’t cover all of the family’s expenses. Items such as post-secondary tuition, mortgage, childcare costs, medical expenses, lifestyle needs and more should be considered.

How To Avoid This Mistake – Be realistic about your current and future expenses. We complete a full needs analysis to determine how much coverage is right for you.

3. Neglecting To Periodically Review Your Needs.
As your life changes, your insurance needs typically do as well. Did your marital status change? Did your family grow? Are you starting your own business? Did your children graduate? The insurance coverage that was suited to your needs when you first got your policy might not be the best for your needs anymore.

How To Avoid This Mistake – Discuss your needs with a life insurance advisor. Make sure to review your policy whenever you experience a significant life change or milestone.

4. Relying Solely On Employer Coverage.
Employer-provided life insurance is a wonderful benefit, but it can be risky to rely on for your only coverage. In many cases, it simply doesn’t offer enough protection and is not based on your specific family and financial situation. And if you leave your job, chances are you could lose this coverage. If this happens, and you’ve developed a medical problem, you might find it difficult, or impossible, to obtain new coverage.

How To Avoid This Mistake – It’s a good idea to consider employer life insurance coverage a welcome bonus, but not your primary coverage. When you purchase your own insurance policy, you can tailor it specifically to your individual needs and situation.

5. Overlooking Expenses That Should Be Covered.
Many people consider only the obvious expenses – lost income and paying for final expenses and debts. To help uncover the ‘hidden expenses’, consider:
- Additional childcare costs
- Caring for an elderly parent
- Your children’s tuition
- Making sure your family can maintain the same standard of living
- Paying off the mortgage and liabilities
- Does anyone in your family need special medical or long-term care?

How To Avoid This Mistake – To ensure you aren’t overlooking any needs, it’s wise to discuss your situation with a life insurance advisor. During your free consultation, your agent should ask you questions and provide you with information to help you determine the amount of coverage needed.

6. Assuming Smokers Or People With Health Problems Cannot Get Coverage.
Smokers and people with health problems should never assume they can’t get coverage. However, it’s important to be honest if you use tobacco or have health problems as it will help the insurance advisor give you the information you need to get the appropriate coverage. Delaying coverage until you quit using tobacco or your health improves is not recommended. Every moment without coverage means your family is vulnerable to a lifetime of financial hardship.

How To Avoid This Mistake – if you use tobacco or have health problems, don’t assume you can’t get life insurance coverage. Don’t put off getting coverage until you quit smoking. Call an insurance advisor to learn about the options available. For example, you can get coverage as a smoker today and apply later for lower non-smoker premiums provided you have stopped using any form of tobacco products for at least 12 months.

7. Insuring Only The Primary Breadwinner.
If someone in the family stays home to take care of children or an elderly parent, the caregiver’s death could lead to significant unexpected expenses. Will your family suddenly be faced with childcare or adult daycare costs or even assisted living expenses? These costs can run for years and really add up. How much will it cost to replace the caregiver services being provided in your household? The answer might truly surprise you.

How To Avoid This Mistake – In-home caregivers represent an important financial contribution to the family – make a list of the current and future expenses you could be faced with in the event of a caregiver’s death and discuss these with a life insurance advisor.

8. Assuming Only Families Need Insurance.
Does anyone in your life such as an aging parent or a disabled sibling depend on you for financial support or care? And even a modest funeral can represent a significant financial burden. Your loved ones could be left feeling obligated to pay those costs as well as any outstanding medical or legal bills.

How To Avoid This Mistake – Look beyond the immediate family and assess what sort of financial strain you might leave for others (for example, a spouse, disabled sibling, elderly parent) if you die unexpectedly. Term life insurance is an affordable and reliable way to protect your loved ones whether you’re single or have a family.

9. Buying Creditor Insurance For Your Mortgage From A Bank
Many banks will offer you life insurance coverage when you take out a mortgage. But unlike individual term life insurance, creditor insurance does not provide for your loved ones’ income needs and the coverage amount decreases each year as the outstanding amount of your mortgage decreases but the premium remains the same. You cannot name your own beneficiary and at most banks, you cannot get better rates if you’re healthy or a non-smoker.

How To Avoid This Mistake – When you buy term insurance, it is designed to suit your needs, not the banks'. Your coverage is fully portable – it stays in place when you change homes, mortgage lenders or jobs. A licensed insurance advisor can help you make the right decision.


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Saint John, Fredericton, St.Stephen, McAdam
Grand Bay, Westfield, Quispamsis, Hampton
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506.214.5433

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