5 Life Insurance Mistakes Families Make (And How to Avoid Them)
Life insurance is one of the most misunderstood financial products. Here are the five mistakes I see every week — and how to avoid every one.
Buying too little coverage
The rule of thumb is 10–12x your income. Most people buy 2–3x because that's what their employer's group plan covers. That's not enough to protect a family long-term.
Waiting until you're 'older'
Every year you wait, premiums go up 8–10%. A healthy 30-year-old can lock in a 30-year term for a fraction of what a 45-year-old pays for the same coverage.
Only buying term when you need permanent
Term insurance is cheap and perfect for income replacement. But if you own a business, have a special-needs dependent, or want tax-advantaged cash value, whole or IUL may be the right layer on top.
Skipping the medical review
Locking in a Preferred Plus rating vs Standard can cut your premium in half. We shop 20+ carriers to find the one that underwrites your health profile best.
Forgetting to update beneficiaries
Divorce, new kids, a business partner — life changes. We review your policies annually to make sure the money goes where you actually want it to go.