Life insurance Awareness Month Week 4: Avoiding Common Life Insurance Mistakes
Closing gaps before they close on you.
Disclaimer: This content is for informational purposes only and should not be considered personalized financial advice. Please consult a licensed professional before making any decisions.
1. Misjudging Your Coverage Needs
Many policyholders either overestimate what they need or overlook critical expenses. Too little coverage can leave shortfalls in debt repayment or education funding, while too much can result in unnecessary premiums.
• Review outstanding debts, future education costs, and ongoing living expenses.
• Compare that total to existing savings and other assets.
2. Relying Solely on Employer-Provided Insurance
Group life benefits through work may offer a base level of coverage, but they often:
• Terminate if you leave or change roles
• Limit the amount available
• Lack customization options (riders, conversion rights)
Consider individual policies that move with you from job to job.
3. Allowing a Policy to Lapse
Missed premium payments or overlooked renewal dates can cause your policy to terminate—sometimes without notice.
• Set up automatic payments or calendar reminders.
• If finances tighten, discuss premium grace periods or alternative payment options with your carrier.
4. Ignoring Beneficiary Updates
Life events—marriage, divorce, births, deaths—should prompt a review of your beneficiary designations. Failing to update beneficiaries can lead to unintended heirs or legal complications.
• Confirm primary and contingent beneficiaries annually.
• Coordinate changes with your estate plan and trust documents.
5. Overlooking Policy Riders and Features
Optional riders can address specific needs, yet many policyholders skip them to lower premiums. Common riders include:
• Term conversion
• Accelerated benefit for chronic illness
• Waiver of premium for disability
Evaluate which features align with your financial objectives.
6. Skipping Periodic Coverage Reviews
A “set it and forget it” approach can leave you with outdated coverage. Market shifts, tax-law changes, and evolving goals call for a fresh look every 2–3 years—or after any major life change.
• Schedule annual check-ins with your advisor.
• Use a standardized policy-review checklist to guide the conversation.
Next Steps
If you’re ready to assess how your current policy aligns with today’s priorities, let’s talk.
📅 Book a Policy Review: We’ll examine your existing coverage, explore options, and align your policy with your life stage and objectives—no obligation.
#LifeInsuranceAwarenessMonth #FinancialPlanning #InsuranceEducation #PlanWithPurpose #AvoidInsuranceMistakes #PolicyReview #LegacyPlanning
Investment advisory services offered through Redhawk Wealth Advisors, Inc., an SEC
Registered Investment Advisor. SEC Registration does not imply any level of skill or
understanding. Redhawk Wealth Advisors and Patten Financial Group are unaffiliated and
separate legal entities.
