Life insurance is a form of protection against financial hardship due to premature death, critical illness, and permanent disability. The contract between the policy owner and the insurer guarantees that the insurer pays a sum of money to the named beneficiaries should the unfortunate event happen.
Deciding on a suitable insurance policy can be a difficult process. Furthermore, the cost and availability of insurance depend on a variety of factors such as age, health, etc. Like any other contract, it is important to be well informed before committing.
Here are 7 common pitfalls to avoid when buying life insurance.
#1 Purchasing the wrong type of policy
There are two main categories of life insurance: Term Life and Whole Life and we know it’s difficult to make a choice between them.
Here we must take the chance to stress that there’s no one choice for everyone, and more often there are people who purchase a combination of both plans....