Life insurance is an essential product for any consumer with dependents who need financial support. Life insurance provides financial support in the event of the untimely death of the policyholder. At Redden Insurance Agency, we provide life insurance in Bradley, WV.
If you’re on the market for life insurance, it’s important for you to avoid the following three common mistakes.
Having only group life insurance from one’s employer
A lot of jobs include life insurance coverage as a benefit. However, employer-sponsored group life insurance does not typically offer much more coverage than twice the policy holder’s annual salary.
You should invest in your own insurance coverage in addition to your employer-sponsored plan to make sure your dependents will be financially stable if you pass away.
Not putting enough time into researching policy options
Life insurance is an important product that could have a big impact on the financial future of your family. That’s why it’s important to carefully research the various policy options available to you. Calculate the amount of coverage you need for your dependents, and make sure you’ll be able to afford the monthly premiums.
Designating a minor as a beneficiary
It’s true that people most often purchase life insurance for the support of their children. However, listing a minor as a beneficiary on a policy can create problems down the road. Money won’t be paid out right away to a minor. Instead, a court will have to designate a guardian to receive the funds.
This can take time and lead to financial complications if the policyholder passes away. That’s why it’s best to determine a guardian- such as a spouse- beforehand and list them as beneficiary.
Are you interested in learning more about your life insurance options in Bradley, WV? Contact us at Redden Insurance Agency and we’ll assist you with your questions and inquiries.