Preheader

 

Get A Quote Service Contact Refer About Home Page
 


Auto Home Business Insurance Life Disability
Home > Blog > Five Life Insurance Mistakes That Can Haunt You
  • Main Menu
    • Home Page
    • Make a Payment
    • Refer a Friend
    • Join Our Newsletter
    • Important Links
    • Calculators
    • Important Files
    • Insurance Glossary
    • View our Blog (88)
    • Location Map
    • Employee Directory
    • Contact Us
    • About Us
    • Privacy Policy
  • Automobile
    • Automobile Insurance Home
    • Auto Accident Claim
    • Add Auto
    • Delete Auto
    • Add Driver
    • Order Auto ID Card
    • Auto Quote, please!
  • Homeowners
    • Homeowners Insurance Home
    • Property Loss Claim Form
    • Report Change of Address- HOME
    • Request Evidence of Home Insurance
    • Home Quote, please!
  • Renters
    • Renters Insurance Home
    • Renters Property Loss Claim Form
    • Renter's Quote, Please!
  • Motorcycle
    • Motorcycle Insurance Home
    • Motorcyle Quote, please!
  • Business & Commercial
    • Business & Commercial Insurance Home
    • Commercial Auto Insurance Quote
    • General Liability Quote Form
    • Commercial Auto Accident Claim
    • Business Owners (BOP) Quote Form
    • Request Certificate of Liability Insurance
    • Builders Risk Insurance Quote
  • Bonds
    • Bonds Home
    • Bond Order Form
  • Health
    • Health Insurance Home
    • Disability Insurance Quote
    • Long Term Care Insurance Quote
  • Life
    • Life Insurance Home
    • Change of Address - Life Insurance
    • Life Quote Request
  • Workers Compensation
    • Workers Compensation Insurance Home
    • Workers Compensation Quote
  • Rental Property Insurance
    • Rental Property Insurance Insurance Home
    • Rental Property Quote Form
  • Employee Benefits
    • Employee Benefits Insurance Home
    • Employee Benefits Quote
  • Condominium
    • Condominium Insurance Home
    • Condo Quote, please!
  • Commercial Auto Insurance
    • Commercial Auto Insurance Insurance Home
    • Add Auto
    • Order Auto ID Card
    • Delete Auto
  • Liquor Based Business
    • Liquor Based Business Insurance Home
    • Liquor Liability Quote Form
  • Watercraft & Boat
    • Watercraft & Boat Insurance Home
    • Boat Quote, Please!
  • Other
    • Other Insurance Home
    • Exit Survey
    • Claim Survey
    • New Quotes, Please!
FRIDAY, OCTOBER 28, 2016

Five Life Insurance Mistakes That Can Haunt You

With Halloween just around the corner, children’s thoughts turn to candy and costumes. Their parents and grandparents should be focusing on more macabre matters — like the life insurance policies they bought (or are thinking of buying) to secure the financial future of these little ghosts and goblins if a key provider dies.

Though life insurance can serve various purposes, for most people, it is a tool for income replacement — to pay the mortgage or foot the bill for college if the unthinkable happens. Often a term-life policy, which provides a preset death benefit when the insured person dies, is all they need. Premiums for these policies, typically offered for 10- or 15-year terms, have fallen sharply in recent years.

But unfortunately it’s not enough to stuff the policy in a drawer and forget about it. Here are some potentially costly life insurance pitfalls that could escape your notice.

1. Rate increases. With a level premium, term-life policy, you’re guaranteed that the cost of the plan will not go up during the initial coverage period – for example, 10 or 15 years. But after that, watch out. When the stated period is up, you’re likely to get an invoice for the latest premium that’s many multiples of what you had been paying previously. Somewhere in the policy fine print there’s probably wording that says the policy is renewed automatically if the premium (meaning whatever you’ve been billed) is paid.

2. Affinity groups. Various professional associations offer life insurance to their members at group rates. They save you the trouble of shopping, but the price won’t necessarily be less than what you could find on the open market or through a reputable insurance broker. There is a hidden cost of buying insurance this way, too: In order to maintain the policy, you generally must keep your membership in the group current by paying the organization’s yearly dues. You may find yourself locked into the membership purely to maintain the insurance policy, even if professionally you’re not getting much out of the affiliation.

3. Beneficiary designations. This is a document given to an insurance company or financial institution indicating who should inherit certain assets that do not pass under a will or trust — such as retirement accounts and the proceeds of a life insurance policy. You fill out the form when you buy the policy, but can later amend it.

Read More: Source

Posted 8:09 PM

Tags: life, insurance, halloween
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2017
  • 2016
  • 2015

  • insurance(76)
  • tips(35)
  • home(27)
  • life(24)
  • homeowner(19)
  • auto(14)
  • safety(14)
  • car(10)
  • holiday(7)
  • health(7)
  • business(6)
  • claims(6)
  • house(6)
  • family(4)
  • homeowners(4)
  • rates(4)
  • policy(4)
  • winter(3)
  • money(3)
  • commercial(3)
  • long-term(3)
  • mistakes(3)
  • claim(3)
  • children(3)
  • halloween(3)
  • new year(2)
  • disability(2)
  • accident(2)
  • thanksgiving(2)
  • renters(2)
  • save(2)
  • long-term care(2)
  • value(2)
  • theft(2)
  • dog(2)
  • funny(2)
  • women(1)
  • dental(1)
  • texting(1)
  • permanent(1)
  • financial(1)
  • quote(1)
  • retirement(1)
  • texas(1)
  • valentine(1)
  • traffic(1)
  • inventory(1)
  • weekend(1)
  • employee(1)
  • renter(1)

View Mobile Version
Our Latest Insurance News
more...

Our Clients Say
more...
  • Erie
  • Foremost
  • Grange
  • Hagerty
  • Hartford
  • Progressive
  • Sacefo
  • State Auto
Home
About Us
Refer A Friend
Contact Us
Customer Service
Make a Payment
File a Claim
Contact Us
Auto Insurance
Home Insurance
Business Insurance
Life Insurance
Health Insurance
Other Insurance Types...
Mailing Address
999 N. Plaza Drive
Suite 630
Schaumburg, IL 60173
Contact Us
847.310.0400
nis@nwinsurance.com
Social
How Can We Help You?
or call us at
847.310.0400
Get A Quote My Policy Location Blog RSS Feed Insurance Website Builder Facebook Twitter Linkedin Blog RSS Feed Facebook Twitter Linkedin