Avoid These 4 Huge Mistakes When Buying Life Insurance

Kimberly MaturinoNews

As we roll into a new year 2021 —we can reflect on 2020 that proved to be quite the volatile year, full of many uncertainties—the novel Coronavirus had claimed more than 300,000 lives in the United States. First and foremost, our team here at ALIR Settlements would like to say that we hope you and your family are safe and healthy.

Looking to the future, although we feel that a positive attitude can be a powerful defense, all of us recognize now more than ever that one of the most responsible things we can do is prepare for what could happen if things don’t go quite as we’d hoped. If you’re considering what type of life insurance and life settlement options are available to you right now, you’re in the right place. We’re here to help.

It’s completely understandable that the current conditions have caused many Americans to ask themselves some tough questions, particularly when it comes to how their families would fare in the event that something happens to them during this pandemic. Most of us have probably made a very important decision when in an emotionally-charged state and later regretted it. And unfortunately, that has become the situation for thousands who are weighing some very important options regarding the future care of their loved ones, as more and more Americans have sought to acquire life insurance policies in recent months.

We don’t want that to happen to you, so we have compiled a list of some of the biggest mistakes that people make when buying life insurance policies.

Assuming Pre-Existing Conditions Will Disqualify Them

This one can stumble people before they even get started. It’s no secret that some life insurance providers will be reluctant to provide coverage to someone deemed “high-risk.” But that doesn’t go for all of them. Each company has their own guidelines that they follow when it comes to their requirements for issuance of a policy. So, it’s good to do a little shopping around to find out which one fits you best. Which brings us to our next big mistake…

Choosing the First Policy They Find Instead of the Best One

Take a second to think about the car-buying process. There seems to be two types of car-buyers out there: the one that compares quotes and financing options from multiple car dealerships, and the one that prefers to just walk into one place and get the entire ordeal over with. Both methods have their pros and cons. But if it’s worth the extra hassle for you, shopping around to find the lowest price and lowest financing rates can actually shave thousands of dollars off of your purchase in the long run. Many people don’t realize that the same thing goes for buying life insurance. In fact, the majority of people seeking a life insurance policy fail to compare rates or even consider applying with more than one company for a policy. And just like when it comes to buying a car, it could save you thousands long-term. If you ask us, that is definitely worth the extra effort. And remember how we previously said that shopping around is a good idea for someone with health issues? This is another area where exploring your options becomes key. Some companies, for example, might be more lenient about certain cardiac conditions. Others might not jack up the prices for smokers as much as the next insurance provider will. Therefore, for many reasons, it’s important to find out which provider offers the best rates for you as an individual.

Not Preparing for the Medical Exam

You might not even have considered the fact that you can “prepare” for a medical exam. It is what it is, right? But there are practical steps you can take to make sure that you put your best foot forward, so to speak, when it counts the most. Getting at least eight hours of sleep the night before and avoiding salty or fatty foods at least 24 hours before your exam will help keep your blood pressure as low as possible, and keep your triglycerides from being elevated when your bloodwork gets done. This is also one of the few times anyone will tell you to avoid exercise (so savor this moment) since strenuous exercise before a medical exam can elevate your heart rate. And finally, avoiding eating for at least two hours before the exam will prevent your blood sugar and blood pressure from creeping up. If you can schedule your exam for first thing in the morning after a full 12-hour fast, that would be best. Some of these things may be a bit inconvenient, but worth it to ensure the best possible results and hopefully qualify for a lower rate.

Not Being Completely Honest with the Insurance Company

We get it. It can be very easy to stretch the truth or fudge a few of the details when applying for life insurance. Does your driving record really matter? Why are they inquiring about hobbies? But in fact, the complete truth is very important to life insurance providers, as they use all of this information to help determine whether to grant or deny you coverage, and what rate to charge you if you do get the stamp of approval. If it comes to light that you deliberately falsified or withheld information—and mark our words, they do have ways of finding out—your application could be denied. Or worse, if you happen to succumb to an issue related to the information that you failed to disclose to the insurance company during the application process, the insurer is well within their rights to refuse to pay out the claim. You definitely wouldn’t want to end up in this situation, because your beneficiaries would be the ones to suffer.

Our team at ALIR Settlements understands that with the stresses that we are all currently experiencing right now, this topic can seem very overwhelming or even frightening for someone who is considering life insurance for the first time. But we strongly believe that there are few things more noble than doing all you can to take care of the ones you love.

So, if you have any questions or need further guidance about anything related to life insurance or life settlements, please feel free to reach out to us at any time. We are always here for you.