When it comes to buying life insurance, there are many things to consider. You want to make sure that you are making the right decision for yourself and for your family. However, there are also a few mistakes that many people make when they are shopping for life insurance. Read on to learn more about six of the most common mistakes people make when buying life insurance:

1. Not adding your spouse as a beneficiary
It’s often assumed that the beneficiary will always be the spouse, but this doesn’t have to be true. Some couples may want to name their children as beneficiaries in the case of untimely death to help with any expenses, or if it is expected that they will not receive an inheritance from their parents when they die. In addition, if your spouse is not working or earns less than you do, they may not be able to afford the additional premium that comes with adding them as a beneficiary.

2. Hiding information from the insurance company
For any insurance, you have to be completely honest about all the necessary details. This means that you must disclose everything so you can purchase the right amount of coverage without having to worry about a denied claim. If you are not truthful about your health condition or your family’s medical history, then there is a good chance that your application will be denied.

3. Being unprepared for your medical exam
When you buy life insurance, the insurer will ask for a medical exam. If they suspect that you are not being completely honest about your health or family history, then they may choose to request an exam even if you have already provided them with this information in the past. If you fail your medical exam, you will not be able to purchase the insurance, and, if you cancel the policy before it becomes effective, you may lose any of the premium that has already been paid. You are more likely to pass the medical exam if you are prepared.

4. Not shopping around for the best rates
You should always shop around and compare rates to ensure that you are getting the best policy available. Different insurers may offer different coverage at different prices, so you need to look into all of your options before deciding. This is especially true if you have been declined by one insurer or don’t like their terms and conditions. If you already have life insurance with one company and want to switch carriers, then it’s best to do so before the policy is activated, since switching can be difficult once the policy is active.

5. Buying too little coverage
The last thing you want is to buy too little of the right kind of coverage. One of the most common mistakes people make when buying life insurance is that they only purchase enough to meet their current needs, which can leave surviving family members struggling. A good rule of thumb is to use the DIME formula — take into account debt, income, mortgage, and education when calculating how much coverage you need.

6. Relying too heavily on employer coverage
Your employer may offer some life insurance coverage, but it’s important to remember not to rely too much on employer-provided benefits. If you were to lose your job or if your employment status changed for any reason, then the life insurance benefits offered by your employer could go away as well. This means that if something unexpected should happen and you need life insurance, it may be too late to buy. In addition, you only have a limited amount of time to purchase additional coverage from your employer, so if you wait too long, then that opportunity may pass by as well.

People make many mistakes when buying life insurance, but hopefully you can avoid these errors. Remember that your family’s future is too important to leave up to chance, so take action today — especially if you are already behind on your current coverage.