Know how to get the most out of your life insurance and avoid these common mistakes.
You purchase life insurance to ensure that your family is protected. However, common life insurance mistakes can put your coverage at risk. Make sure that you get the most out of your coverage and follow these life insurance guidelines to avoid mistakes.
Don’t List Your Estate As A Beneficiary.
When you list your estate as a beneficiary you’re subject to state taxes. From inheritance taxes to higher tax rates, naming your estate as a beneficiary heeds unnecessary hoops to jump through. Rather than naming your estate, be sure to name the individuals that you want named as beneficiaries on your policy.
Regularly Review Your Policy.
It’s important to review your coverage every few years, if not annually. Sometimes your needs change and you may want to adjust your policy accordingly. Additionally, be sure to change the beneficiary if needed. If you forget to change it, then the benefits go to whoever is listed.
List At Least Two Beneficiaries.
We can’t predict the future. While you hope your policy benefits your beneficiaries, sometimes life gets in the way. In the event that you survive your beneficiary, your policy benefits will be paid to your estate. Be sure your loved ones get the benefits you intended to give them and name at least two beneficiaries.
Think About How Your Coverage Meets Your Needs.
There are two main categories of coverage: term coverage and permanent coverage. Factors like affordability, what your family’s fiscal needs are, and life expectancy are all aspects that play a role in determining what type of coverage you need. Be sure to update your coverage as your lifestyle and your needs change.
Make sure you avoid life insurance mistakes and choose the best policy for your needs. Contact the professionals at Robert J. Los Insurance Agency to find you the right insurance. Located in Hamburg, New York, we serve all your personal and commercial insurance needs.