Common Mistakes When Buying Life Insurance

So you're planning on buying life insurance? It's probably one of the best decisions you'll ever make for yourself and your loved ones. After all, life insurance can help protect your future in case of an emergency. However, there are common mistakes that people make when buying a policy. That is what this article is all about. We will share with you what these common mistakes are so that you could keep them in mind when buying insurance. That way, you can be sure that you are making the right decision and, more importantly, that your future is secure. Ready? Let's get started with...

  1. Buying insurance from your bank. If you're like most people, you probably have a loan with a bank. And chances are that they will try to cross-sell you their other products, including life insurance. It seems to make a lot of sense, since it's more convenient to have them handle both your loan and insurance. However, the truth is that there's a good chance that you're not getting a great deal from them. In fact, other agencies might be able to offer you better ones. How? By avoiding mistake #2.
  2. Not shopping around. This is probably the worst thing that any person can do when buying insurance. The truth is that it's a lot easier now to compare offerings of different insurance companies. Our website, for example, can provide you with quotes from different insurers with just a few clicks. You need to compare them because it's the only way you can have an idea of who can provide you with a better offer.
  3. Being over/under-insured. Insurance premiums cost money, that's why it's tempting to buy the cheapest one available. Or if you have enough funds, it's also tempting to get the most expensive one in the belief that it will provide you with the most comprehensive coverage. But you can be wrong either way. The first one makes you under-insured, which can put your family's financial future at risk since the benefits won't be enough to cover even for their most basic needs. Meanwhile, being over-insured means you'll be wasting money in the process. It's therefore important that you find the middle ground by knowing exactly what your needs are.

Here at Rate Detective, our qualified advisors can help prevent you from making these costly mistakes. They will assess your personal needs, so that they can provide you with rate comparisons of Australia's top insurance companies. All these will help you buy life insurance that's truly fit for your needs. Contact us today for more details.

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Published on May 5-th, 2013 in Life Insurance
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.

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