Top 3 Life Insurance Mistakes … and How to Avoid Them
Life insurance is one of the most important financial tools for protecting your loved ones and preserving your assets. Yet, many people make unforeseen errors when purchasing life insurance — or worse, delay buying it altogether.
Here are three critical life insurance mistakes, and how you can avoid them to secure your family’s future:
1. Not Buying Life Insurance
One of the most common mistakes is simply not purchasing coverage. Many people assume that their employer-provided life insurance is enough. Unfortunately, that coverage ends when your employment does — and may not be sufficient even while you are employed.
Delaying also makes coverage more expensive. As you age or develop health issues, premiums increase significantly. Buying an individual policy early not only ensures continuous coverage but can also save you thousands over time.
Actionable Tip: Don’t wait — get started today. The online purchase process only takes 15 minutes!
2. Overestimating Cost
Over 72% of consumers overestimate the cost of life insurance by a factor of two to three times, according to the Life Insurance Marketing and Research Association (LIMRA). In reality, advances in medical care and healthier lifestyles have led to longer lifespans resulting in more affordable premiums. The marketplace is also extremely competitive, so insurers are constantly revising product pricing in order to win your business.
Actionable Tip: Use our partner, Ethos, to quickly calculate your potential premium. Just click the link to explore your options — it might be more affordable than you think.
3. Getting the Coverage Amount Wrong
Choosing a policy based on a "gut feeling" or generic rule of thumb often leads to underinsurance. Most Americans significantly underestimate what their families will actually need in the event of their death.
The good news? Calculating the right amount doesn’t require complex math. Simply consider your family's current and future needs, including debt, income replacement, dependent costs, and other long-term expenses. Roth Advisors has created a simple one page calculator to assist you in determining the correct amount.
Actionable Tip: Spend just 15 minutes using Roth Advisor’s simple life insurance calculator to find the right coverage for your situation.
Final Thoughts
Life insurance isn't just about having a policy — it's about making sure it’s the right policy for your needs and budget. By avoiding these common pitfalls, you can protect the people who matter most — no matter what the future holds.
Want to Learn More?
At Roth Advisors, we specialize in designing customized, non-taxable investment and insurance plans built around your financial goals. Contact us today or schedule a virtual consultation to discuss how we can help you protect and grow your wealth.
Disclosure: This content is for informational purposes only and should not be considered investment or insurance advice. All investing involves risk, including the potential loss of principal. Speak with a licensed advisor before making financial decisions.