Buying life insurance is a big decision and one that should not be taken lightly. Many people choose the wrong life insurance company and end up paying more than they need to. This happens when you don’t research or compare all of the companies available before you make your selection.
So what do you do if you choose the wrong life insurance company? Read this blog to learn about mistakes to avoid when choosing an insurance provider and how to switch life insurance companies!
Common Mistakes To Avoid When Choosing Insurance
Not Doing Your Research
Many people who are looking to buy life insurance don’t take the time to do their research before making their purchase. They think that purchasing insurance is quick and easy, so they just pick the first company that they find without doing any comparison shopping. This can be a costly mistake. Take your time to compare your options and choose the right company.
Getting the Wrong Coverage Plan
Picking a life insurance policy that isn’t a good fit for your needs is one of the most common mistakes people make when purchasing life insurance. Most people assume that a basic plan that covers only burial expenses is sufficient. However, many types of life insurance policies offer varying features and benefits. Make sure to consider your age, health, assets, and other financial obligations before you select a type of coverage.
Waiting Too Long
If you wait too long to purchase life insurance, you risk losing out on the benefits you could receive by buying it earlier in life. In most cases, the younger you are when you purchase a policy, the lower your premiums will be. Waiting until later in life means you’ll have to pay higher premiums than you would have had you purchased your policy when you were younger.
What to Do If You Get the Wrong Life Insurance Company?
Check the Policy
In most states, the insurer is required to give the customers a “free look” period. This period is 10 to 30 days depending on the state law of your location. You can cancel the policy and receive a full refund of your premium payment during this time. Be sure to use this time wisely to review the policy and ensure that it’s what you need and meets all your requirements.
Premium Payments
If you’re paying on a month-to-month basis for whole-life insurance, you’ll need to pay surrender fees before canceling the policy. Surrender fees are what the insurance company charges to cover the administrative and other expenses incurred when you cancel your policy early.
On the other hand, if you’ve paid for the entire year, you can opt to cancel the coverage plan mid-way, and your premium will be backed on a pro-rata basis. You should also contact the customer service department of your insurance company to obtain more information on this issue.
Things to Remember Before Changing Your Insurance Company
The next insurance company you will move on to will check your insurance claims. If you’ve filed many claims in the older company, you will likely face a higher insurance premium in your new insurer.
Also, keep in mind if your new insurer is offering lower premiums than your existing one, then this probably means that they are charging more for their services behind the scenes and not passing on the benefits to the customers. Make sure you do plenty of research and talk to the life insurance agents before signing up for a new insurance policy.
If you’re looking for a reliable life insurance company in Houston, Texas, we can help! Our life insurance agents will provide all the necessary information as well as a variety of life insurance coverage plans that you’re looking for.
We offer final expense insurance and burial insurance for parents in Houston!
Reach out to us for more information.