Insurance Planning• 2026-05-28• 6 min read
7 Critical Life Insurance Mistakes to Avoid
Securing life insurance is one of the most responsible financial decisions you can make. However, simple errors in planning or implementation can compromise the protection you intended to build.
Common Pitfalls in Life Insurance Planning
1. Relying Only on Employer Group Life: Group policies through work are great perks, but coverage limits are often low (e.g., 1x salary) and coverage typically ends if you change jobs or retire.
2. Waiting Until Health Changes: Buying early locks in preferred health classes and lower rates for life.
3. Underestimating Coverage Needs: Forgetting to account for inflation, college costs, or stay-at-home parent services.
4. Forgetting to Update Beneficiaries: Failing to update designations after marriage, divorce, or new children.
5. Choosing the Wrong Term Length: Selecting a 10-year term when a 20- or 30-year term is needed to cover a child's upbringing or mortgage.
Summary & Next Steps
Working with an independent advisor helps ensure your policy is properly structured, adequately sized, and reviewed regularly.