Not Reviewing and Updating Life Insurance Policies
Life insurance should be evaluated every few years to make sure the policy you initially purchased still meets your needs, said Mike Raines of Raines Insurance Group. “The majority of people purchase policies in their 30s and 40s,” Raines said.
“Often people purchase a term policy with a 10, 15 or 20-level term period. But, what happens when that term period expires and you still need protection? Now, you are 10, 15 or 20 years older and now have some health issues that might make life insurance unaffordable or even impossible to purchase.”
In other words, Raines said, it’s better to reevaluate your life insurance needs every couple of years and adjust your policy to make sure it lasts as long as you need it to. Don’t wait until the end of the term.
