One of the most common mistakes people make when buying term life insurance is waiting too long to get a policy. Life insurance premiums increase as you get older, so delaying the purchase can significantly raise the cost. Additionally, if your health changes over time, you may become ineligible for coverage or face higher rates. It's important to act sooner rather than later to lock in lower premiums.
Another mistake is not shopping around for the best rates. Life insurance quotes can vary widely between companies, even for the exact same coverage. Failing to compare quotes from multiple insurers could mean paying hundreds more per year than necessary. Taking the time to get quotes from several providers is crucial to ensuring you get the most affordable term life insurance policy. A related error is assuming the cost of life insurance is too high. Many people, especially younger individuals, overestimate the actual cost, deterring them from getting the coverage they need. In reality, term life insurance can be very affordable, particularly for those in good health. The fourth common mistake is buying a policy that is too short in duration. Term life insurance typically comes in 10, 15, 20, or 30-year terms. Choosing a term that is too brief, such as 10 years, may leave your family inadequately protected if you were to pass away after the policy expires.