There is so much to consider when purchasing life insurance. So how do you know when you’re getting a good deal? By avoiding these common life insurance mistakes, you can rest assured that you are locking in a competitive rate and protecting those who matter most.
1. Naming Your Estate as Your Beneficiary
It’s hard to believe, but many people fail to properly name beneficiaries when purchasing life insurance. If you name your estate as the beneficiary of your policy, your death benefit may be subject to probate at a considerable cost and delay. This can be avoided by simply naming an adult or a trust as the beneficiary. Furthermore, this mistake can also open the door for creditors to make claims against your life insurance benefit. If, however, you have named beneficiaries, most states provide protection from creditor claims against life insurance death benefits.