Finding a life insurance policy that addresses your family’s struggle with a critical illness is crucial if you want to ensure long-term economic stability. If you or someone you love was recently diagnosed with a life-threatening disease, the insurance solutions experts at DFSIN TORONTO WEST urge you to carefully review the following list of common mistakes that families make when purchasing life insurance policies.
4 Life Insurance Mistakes to Avoid With a Critical Illness
- Underestimating Your Family’s Needs
When selecting life insurance plans, families usually make two common mistakes: choosing a policy that doesn’t fully replace current income or purchasing a plan that is too short of a term. This is especially true for loved ones who suffer from critical illnesses, as the unknown trajectory of a life-threatening condition can be difficult to predict. Before getting life insurance coverage, sit down with your family and determine your current household income, as well as a long-term budget to cover expenses and manage savings. As a rule of thumb, you should avoid plans that are too short in time and not enough in amount. Otherwise, you may have financial problems down the road.
- Procrastinating Signing Your Policy
The longer you wait to choose a life insurance plan, the higher the chances that you will be ineligible for coverage. The cost of term life insurance coverage usually increases with age; pair this with the increased risk for health conditions and you’re risking not having enough support for your family. You should plan on purchasing early in your life.
- Adding Riders
As you’ve searched the life insurance market for plans that are compatible with your family’s needs, you’ve probably noticed that providers offer riders—or extras—that can easily be tagged on to your policy for an additional cost. While some riders are worth considering, such as insuring your children, others could be unnecessary. It’s best to speak openly with prospective providers, making sure that you understand what’s worth adding and what’s worth skipping.
- Failing to Read the Fine Print
As with any contract, you should spend the time necessary to carefully read your plan before purchasing, and then make sure to review your plan every few years to ensure that it’s still pertinent to you and your family. If you discover that you or someone you love has been diagnosed with a critical condition, for example, then you should contact your provider immediately to guarantee that you’re protected.
Get Life Insurance Now
For life insurance solutions in Ontario, contact DFSIN TORONTO WEST today.