Life Insurance Mistakes
Potential Mistake 1: The insured's estate is named as beneficiary (unless intentionally planned due to specific needs).
Potential Mistake 2: Failure to name at least two "backup" beneficiaries.
Potential Mistake 3: Failure to regularly review your policies.
Potential Mistake 4: The product does not match the your needs (you have the wrong type of life insurance).
Potential Mistake 5: The amount of personal coverage is inadequate for family financial security or estate planning goals.
Potential Mistake 6: The policy proceeds are payable outright to minor children or grandchildren, or to handicapped or
emotionally immature or financially irresponsible individuals.
Potential Mistake 7: All the insurance is owned by you, the insured.
Potential Mistake 8: There's been no investigation to see if your business or practice can provide insurance on a more cost-or-tax-efficient basis.
Potential Mistake 9: The parties forgot that at some point term insurance (including group coverage) will self-terminate and/or become prohibitively expensive to carry.
Potential Mistake 10: Insurance has been purchased or treated as though it were a commodity.