The importance of having personal life insurance in the United States cannot be overemphasized. Life is unpredictable and you never know what the future holds. Having personal life insurance will ensure that your loved ones do not suffer when the inevitable happens. For example, if you pass away unexpectedly, personal life insurance should help cover a mortgage, support your family, and repay any other existing loans.

However, to get these benefits, it is important to ensure that you get the correct insurance and that you follow the proper procedures during the insurance-buying process. Below are the common mistakes to avoid when buying life insurance:

1) Hiding information from the insurance company
This is a big mistake people can make when buying personal life insurance. Some people conceal crucial information in order to get lower premiums or have their applications approved quickly. However, this move is counterproductive, as the coverage can be canceled as soon as the insurance company realizes that you hid information from them. It is better to provide truthful information and negotiate with the insurance company on the monthly or annual premiums.

2) Relying too much on employer coverage
You might feel pretty lucky if your employer provides group life insurance as part of employee benefits. But the truth is that group life insurance may not be adequate to cover all of your needs. This is because insurance policies offered by most employers are basic and won’t cover most of the important things normally covered by insurance companies. The amount of insurance you need depends on how much you earn per year and how much time you have before retiring from employment. Your employer is therefore unlikely to pay all the premiums needed for your type of insurance. Besides, employer coverage can change at any time, especially if you decide to quit or change jobs.

3) Being unprepared for your medical exam
Life insurance companies usually set insurance premium rates based on your health status. That’s why they always insist on a medical exam before issuing an insurance policy — for them to offer competitive rates, a life insurance company must determine your current health status and verify all the information you provided in your application. As such, it is important to prepare well for your medical exam to eliminate any doubts about the information provided earlier.

4) Not shopping around for the best rates
Different insurance companies charge different rates on their life insurance policies. Do not assume that all of them charge the same rates. That’s why it is important to shop around and settle on a company that offers the most competitive insurance rates in the market.

5) Buying too little coverage
Lastly, some people make the mistake of buying too little life insurance coverage. This can either be intentional or due to a lack of adequate information about personal life insurance. It is highly recommended that you consult with your insurance agent to know what type of insurance is enough for you and your family’s needs.