What is the most common mistake people make when buying life insurance?

Question

Mark Bilgere · Accepted Answer

The most common mistake people make when purchasing life insurance is underestimating the amount they need. Often, people will just pick a round number that sounds like it should be enough without doing a true analysis of their future needs. Life insurance is one of the greatest ways to leverage money for the future when used properly.

Answered by Mark Bilgere on May 6, 2026

Agent Licensed in TX, IA, IN & 6 other states

Answered by Mark Bilgere Life Insurance Agent

Allen McGirl · Answer

One of the biggest mistakes people make with life insurance is waiting too long because they think they’ll ‘get to it later.’ Life has a funny way of getting busy, and unfortunately rates don’t get cheaper as we age. Most people are surprised to learn that getting coverage younger and healthier can make a huge difference in cost.

Answered by Allen McGirl on May 11, 2026

Agent Licensed in CO, AK, AL & 37 other states

Answered by Allen McGirl Life Insurance Agent

Kris Moen · Answer

One of the biggest mistakes people make with life insurance is waiting too long to buy it.

People tend to think:

“I’m healthy now.”
“I’ll do it after harvest.”
“Once the kids are older.”
“After I lose some weight.”
“When business settles down.”

But life insurance gets more expensive with age, and health changes can happen fast. Sometimes it’s not even a major diagnosis — it can be blood pressure meds, sleep apnea, diabetes, or a heart issue that suddenly changes pricing or insurability altogether.

The second big mistake is buying based only on price instead of purpose.

A lot of people shop life insurance like auto insurance:

“What’s the cheapest monthly premium?”

But the real question should be:

“What problem am I trying to solve if I die too soon?”

Corey Schuler · Answer

I believe the most common mistake that people make when buying life insurance is not shopping around. When you only talk with one agent, they may not represent all the companies that best fit your underwriting profile and budget. You ideally want to work with someone who has experience helping others similar to you, or who has the ability to accurately quote you, and not just give you a low ball quote to get an application from you.

Answered by Corey Schuler on May 1, 2026

Broker Licensed in TX, AL, AR & 19 other states

Answered by Corey Schuler Life Insurance Agent

Norma Reynoso · Answer

Purchasing too little coverage they underestimate their financial obligations.
Relying only on Employer coverage usually not portable if you leave job

Sandi Horne · Answer

The most common mistake people make when buying Life Insurance is NOT getting any ..protect your most precious assets - Family.

Juliette Chihade · Answer

One have to find out first and foremost what types of Life Insurance Plans available in their area.
What is the purpose of buying Life Insurance? If it is to cover debt, replacing income or education funds for children.
Waiting too long assuming in their 20's, 30's or 40's their is no need for life insurance. 
Relying on employer providing Life Insurance plan for employees. That can be lost with leaving the job for many reasons. 
Choosing the wrong plan.

If you contact me to get Life Insurance Coverage, I would have a summary of all the above
in addition to the cost today. My focus will be to provide the best for the lowest cost.

Mark Cunningham · Answer

The most common mistake people make when purchasing life insurance is underestimating the amount they need. Often, people will just pick a round number that sounds like it should be enough without doing a true analysis of their future needs. Life insurance is one of the greatest ways to leverage money for the future when used properly.

Answered by Mark Bilgere on May 6, 2026

Agent Licensed in TX, IA, IN & 6 other states

Jordan Shanbrom · Answer

Not understanding your situation fully. I meet clients who will buy a life insurance policy but have no idea why they bought the plan or what it does for them and their beneficiaries. When you buy a policy and your agent begins a needs analysis, ask them for a copy of it, so that you are made aware why you needed the coverage amount that was offered. 

For example, if you buy a $1 Million Term Insurance Plan for 10 years, but 2 years later, you don't remember why you even got the plan in the first place, that is not ideal. Even a small note, "Got the 10 year term to cover the last 7 years of the mortgage plus college expenses for my 2 kids that will finish college in 4 years from now." Straight forward and easy to understand. By doing this you are able to jog your memory in case you ask yourself the most common mistake question I hear clients ask, "Why did I buy this policy?"

Chris Neal · Answer

Most people buy the bare minimum. It is important to take into all factors when deciding what the cost would be. 90% of people are under insured should something happen to them.

Scott Quintiliano · Answer

The most common mistake people make when buying life insurance is selecting the incorrect amount for death benefit!

Marc Rheingold · Answer

Guessing instead of doing the math: People often underestimate how much their family would really need.
Chasing the cheapest option: Focusing on price usually means ending up with too little coverage.
Putting it off: Life insurance feels easy to delay—until health changes or costs go up