Insurance is one of the most important financial tools available, yet many individuals make costly mistakes when purchasing policies. At SEAMAN FINOVA LLC, we’ve seen common pitfalls that can leave people underinsured or overpaying for unnecessary coverage. In this blog, we highlight the top insurance mistakes and how to avoid them.
Mistake #1: Buying the Cheapest Policy
Many people focus solely on cost and choose the cheapest insurance plan without considering coverage details. While a low premium may seem attractive, it often comes with high deductibles and limited benefits. Instead of looking at price alone, we help clients evaluate policies based on value.
Mistake #2: Not Reviewing Policies Regularly
Life circumstances change—marriage, children, home purchases, or career shifts can all impact insurance needs. Unfortunately, many people forget to update their coverage accordingly. We recommend reviewing policies annually to ensure they still provide adequate protection.
Mistake #3: Overlooking Exclusions and Limitations
Insurance contracts contain fine print that many policyholders ignore. Exclusions, waiting periods, and claim limitations can significantly impact benefits. Our job is to clarify these details so clients understand exactly what their policies cover.
Mistake #4: Relying Only on Employer-Provided Insurance
While employer-sponsored insurance is beneficial, it often falls short in providing full coverage. Many employees do not realize their workplace policies may not cover dependents adequately or provide enough life insurance. We help clients assess whether additional personal coverage is needed.
Mistake #5: Waiting Too Long to Get Insurance
Some individuals delay purchasing life or health insurance, assuming they won’t need it until later. However, insurance premiums increase with age, and waiting too long can lead to higher costs or ineligibility due to health issues. We encourage clients to plan ahead to lock in better rates and coverage.
At SEAMAN FINOVA LLC, we help clients avoid these mistakes by offering expert advice, ensuring they choose the right policies for long-term security.
