Life Insurance Six Common Mistakes To Avoid
5. Surrendering Life Insurance Policy Or Withdrawing From It Before Maturity
Yes, Family Is Forever!
This is a serious mistake and compromises the financial security of your family in the event of an unfortunate incident. Life Insurance should not be touched until the unfortunate death of the insured occurs.
Some policyholders surrender their policy to meet an urgent financial need, with the hope of buying a new policy when their financial situation improves. Such policyholders need to remember two things.
First, mortality is not in anyone’s control. That is why we buy life insurance in the first place. Second, life insurance gets very expensive as the insurance buyer gets older.
Your financial plan should provide for contingency funds to meet any unexpected urgent expense or provide liquidity for a period of time in the event of financial distress.