AccuQuote Reveals 10 Devastating Life Insurance Mistakes to Avoid During the Holidays

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) January 5, 2011 -- Wheeling, IL December 31, 2010 – AccuQuote, a leader in providing term life insurance quotes to people across the United States, reveals the top 10 most devastating mistakes people make when shopping for life insurance. The multi-carrier life insurance quoting and brokerage firm encourages consumers to especially avoid these mistakes during the holidays when unexpected tragedies are more likely to occur.

“Life insurance is one of the most important components of a family’s overall financial plan,” says Byron Udell, founder and CEO of AccuQuote. “That’s why it’s so important to learn the dos and don’ts of life insurance buying. Not having it all, or not having the right type or amount of coverage can greatly put your family’s financial future at risk.”

When shopping for life insurance, AccuQuote suggests avoids the following mistakes:

1. Buying too little coverage – “Some people think that $200,000 sounds like a lot of money, but the fact is, by the time your family pays off the mortgage, puts away money for your children’s college tuition and pays back outstanding bills, that money will be gone in no time,” says Byron Udell, founder and CEO of AccuQuote. “Most experts recommend having a life insurance policy that is large enough to fund your family’s current and future financial obligations for 10 to 20 years or until your children are out of college.” Use AccuQuote’s term life insurance calculator.
2. Not considering value – Finding the lowest price may be top of mind for most people, but the fact is, considering value over price is more important when it comes to life insurance. “Term life insurance, by nature, is inexpensive. So you won’t have to do much shopping to find an affordable policy, especially if you use an online source like AccuQuote,” says Udell. “The real reward is finding a policy from a financially stable company with features, like renewability and convertibility rights. Those policies are going to offer your family the best type of protection.”

3. Selecting a short term length – “If the purpose of your insurance is to provide coverage until your children are out of college or your mortgage is paid off, you need a policy that lasts accordingly. If your child is currently one and you have 25 years left on your 30 year mortgage, you need a policy for at least a 25 to 30 year term,” says Udell. “If you buy a short 10 year term policy now with the intent to renew it later, you’ll pay a higher price since rates increase with age.”
4. Not conducting a regular policy review – Buying life insurance is not a one time event. Life events, such as having another child, buying a new home or getting a job promotion all indicate reasons to increase life insurance coverage. AccuQuote.com offers free life insurance policy reviews.

5. Settling if a smoker – Most life insurance companies charge higher rates for smokers since the risk of death is much higher for individuals in that category. However, certain companies gives breaks to those who only smoke occasionally for celebratory purposes or who have recently quit. Using an online multi-carrier life insurance quoting and brokerage firm, like AccuQuote, is the best way to understand the underwriting guidelines and leniencies of dozens of companies all in one place.
6. Canceling a policy too soon – Canceling a policy and buying a new one is common if better rates are offered or a different type of coverage is needed. However, always make sure the new policy is paid for and in force before cancelling an existing life insurance policy, according to Udell. Cancelling an old policy before activating a new one puts a family at great risk if the insured were to die in between policies.

7. Delaying buying life Insurance – “Don’t put off buying life insurance,” says Udell. “Not only will you family be more vulnerable to financial disaster the longer you wait, but rates increase with age.” Lock in low rates today and avoid financial grief later.

8. Choosing a no-exam policy over a traditional policy – Life insurance policies that do not require a medical exam typically only work in favor of those who suffer from severe health conditions. The principle behind such policies is that the mortality risk is spread across all of the policies; averaging out the cost. As a result, people with a greater risk of dying pay the same rate as those who are healthy. Alternatively, traditional policies that require a medical exam favor those in overall good health. “Taking an exam now is worth money it will save you in the end,” says Udell.
9. Relying solely on group coverage – Many employers provide life insurance as part of an employee’s overall benefits package. While a pleasant perk, the coverage offered is rarely enough. “It’s important to have an individually underwritten term policy in addition to your group coverage to provide your family with the peace of mind they need. In addition, if you lose your job, you may lose your life insurance benefits.”

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