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  • Answer Upon - Life Insurance - 5 Mistakes People Make When Purchasing A New Policy

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    1. Procrastination. Never a good habit, procrastination costs you money when it comes to purchasing life insurance. Life insurance premiums are based on the age and health of the insured. Younger people pay less than older ones on the theory that they will live longer and pay more premiums. The longer you wait to buy life insurance, the more it costs.

    Remedy: Purchase sooner rather than later. The lowest price you will ever get is the one you qualify for now. To overcome inertia, set a deadline to buy insurance. You will thank yourself later.

    2. Paying with after-tax dollars. Many people who can pay for life insurance with pre-tax dollars are not doing so. Instead they are paying with hard-earned, after-tax dollars. If you are self-employed, you might qualify to buy life insurance through your company with

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    ased on the age and health of the insured. Younger people pay less than older ones on the theory that they will live longer and pay more premiums. The longer you wait to buy life insurance, the more it costs.

    Remedy: Purchase sooner rather than later. The lowest price you will ever get is the one you qualify for now. To overcome inertia, set a deadline to buy insurance. You will thank yourself later.

    2. Paying with after-tax dollars. Many people who can pay for life insurance with pre-tax dollars are not doing so. Instead they are paying with hard-earned, after-tax dollars. If you are self-employed, you might qualify to buy life insurance through your company with

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    Remedy: Purchase sooner rather than later. The lowest price you will ever get is the one you qualify for now. To overcome inertia, set a deadline to buy insurance. You will thank yourself later.

    2. Paying with after-tax dollars. Many people who can pay for life insurance with pre-tax dollars are not doing so. Instead they are paying with hard-earned, after-tax dollars. If you are self-employed, you might qualify to buy life insurance through your company with

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    ia, set a deadline to buy insurance. You will thank yourself later.

    2. Paying with after-tax dollars. Many people who can pay for life insurance with pre-tax dollars are not doing so. Instead they are paying with hard-earned, after-tax dollars. If you are self-employed, you might qualify to buy life insurance through your company with

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    dollars are not doing so. Instead they are paying with hard-earned, after-tax dollars. If you are self-employed, you might qualify to buy life insurance through your company with pre-tax dollars. The same is true if you are a partner in a business.

    Remedy: Ask your tax advisor if you would benefit from paying for life insurance through your business or employer.

    3. Designating an estate as beneficiary. Making your estate your beneficiary is a costly mistake. It subjects your death benefit to inheritance taxes it would not incur if it were paid to an individual. It also means the death benefit will end up in probate court to be settled along with the rest of your estate. That means the benefit will not be available to pay for a funeral, make a house payment, or cover any other immediate expenses.

    Remedy: Designate a l

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