10 Biggest Mistakes People Make When Buying Life Insurance

3) Failing to check the medical history

Having a health issue or preexisting condition can mean a policy may not be offered to you, or if it is, it may be denied. Don’t fall into a trap of assuming your previous clean bill of health means you can buy insurance now; talk to an agent about how your current health affects what policies are available to you.

4) Insisting on false guarantees or pricing life insurance incorrectly

Some salespeople, agents and even insurance companies may try to sell you on an extremely expensive type of life insurance (called universal or term) that guarantees your loan will be paid off in full no matter what happens. But most people who insure their loan with life insurance do so through a cheaper type called permanent life insurance.