Buying Life Insurance is no easy task. It raises a lot of uncertain questions that leave us wondering what we need to do to make it easier for our loved ones should anything unexpected occur.
Here are the four most common mistakes that people make when buying life insurance;

1. Chasing the best price, and not the best cover
• Let’s face the facts; we buy life insurance to have some sort of peace of mind if something major was to happen to us.
In saying this, we’re always reluctant to pay too much for cover. Cheaper policies (aka too good to be true) can be riddled with potential issues, so have a good read of the fine print and look into the provider’s claims and dispute handling history, and MOST importantly, above all else, review the listed policy exclusions.

2. ‘It’s ok, my superfund has Life Insurance
• I have heard it one too many times. People often rely on the Life Insurance cover provided by their individual superfund.
• Most super funds provide a default level of cover but, this is often well below the level most people need. Have a look at your latest super statement and see if the level of cover will even cover half your mortgage. Chances are, it won’t. Did you know some policies are canceled automatically when you change jobs or stop receiving super money from your boss?
• It’s important to know and understand all the finer details when it comes to life insurance and super. Do your research; it’s worth the extra time.

3. ‘I don’t need advice, the guy on TV said its easy’
• Buying a Life Insurance policy is as easy as buying chocolate. Nowadays, it’s all a matter of picking up the phone or clicking a button online, and your Life Insurance Policy is sorted. You can walk into Coles and buy toilet paper and life insurance, all in the same aisle. It’s accessible.
• However, accessibility can be dangerous. Like I always say if it’s too good to be true, it is. Life insurance that is quick and easy to get maybe declined at claim time for reasons such as non-disclosure, exclusions or hidden clauses.
• Sitting down with a qualified and independent financial planners Melbourne means you can benefit from advice on a multitude of policies that can be tailored to your needs. There’s no point in taking shortcuts when it outrageously increases the risk.

4. Life changes, so should your insurance
• Make the conscious effort to review your cover annually, and adjust accordingly. You may need to make some changes if;
• You’ve recently been married or divorced (hopefully not within the same year!)
• Have children on the way, or children who have left the nest.
• Have an increase in income, more debt or are paying off a mortgage.
• All these are circumstances shape the level of cover that you have and naturally change over time.
• We never buy life insurance for ourselves. It’s a small investment that we make to ensure that we don’t leave our families high and dry in the event of our death.
• Spending 20 minutes to consider your life insurance choices now, will avoid any confusion later on. In my opinion, it’s the greatest gift you can give.

Author's Bio: 

This article is published by Paul sharing information regarding Common Mistakes When Buying Life Insurance
and business insurance advice.