Buying life insurance is one of the most important financial decisions you’ll make—but it’s also one of the most misunderstood. Whether you’re protecting your family, securing your mortgage, or planning your legacy, avoiding common pitfalls can make all the difference.
At LTC Mortgages, we’ve outlined five of the most common mistakes people make when buying life insurance—and how you can avoid them to get the right cover at the right price.
Mistake #1: Waiting Too Long to Buy Life Insurance
Why it’s a problem:
The younger and healthier you are, the cheaper your life insurance premiums will be. Waiting until later in life—especially when health issues arise—can result in much higher costs or even policy exclusions.
What to do instead:
Apply as early as possible, even if you’re in your 20s or 30s. Locking in a low premium now can save you significantly over the life of your policy.
Mistake #2: Choosing the Wrong Type of Policy
Why it’s a problem:
Life insurance isn’t one-size-fits-all. From level term life insurance to decreasing term or whole-of-life cover, picking the wrong type can leave you underinsured—or paying more than necessary.
What to do instead:
Speak with a qualified life insurance adviser who can help match your personal circumstances to the right policy type.
Mistake #3: Only Insuring the Higher Earner
Why it’s a problem:
Many households only insure the primary earner, overlooking the financial impact of losing a stay-at-home parent or lower-income partner. But the costs of childcare, household duties, or other unpaid support can be significant.
What to do instead:
Ensure both partners have adequate cover in place. Life insurance should protect the overall financial stability of the family—not just income.
Mistake #4: Not Getting the Right Amount of Coverage
Why it’s a problem:
Too many people base their coverage on funeral costs alone. But the real need often includes income replacement, mortgage repayments, outstanding debts, and the future needs of dependents.
What to do instead:
Calculate how much your family would need to maintain their lifestyle without your income. Use this figure as the foundation for your policy amount.
Mistake #5: Not Updating Your Policy After Life Changes
Why it’s a problem:
Major life events—marriage, the birth of a child, buying a house, or changing jobs—can all impact your financial responsibilities. If your policy doesn’t reflect your current lifestyle, you might be under-protected.
What to do instead:
Review your life insurance regularly. A quick check-in after major life milestones can ensure your cover stays relevant and effective.
Avoid Mistakes with Expert Life Insurance Advice
Life insurance doesn’t need to be complicated—but getting it right matters. At LTC Mortgages, we help you find the best cover for your needs and budget, and guide you through every step of the process.
We work with some of the UK’s most trusted insurers, including:
- Aviva
- British Friendly
- Cirencester
- Guardian
- Holloway
- HSBC
- Legal & General
- LV=
- National Friendly
- Royal London
- The Exeter
- Vitality
- Zurich
Get a Free Life Insurance Quote Today
Don’t risk making costly mistakes. Get expert, independent advice and secure the cover that fits your life.
Contact LTC Mortgages for your free, no-obligation quote:
Phone: 0151 662 0188
Email: info@ltcmortgages.co.uk
Website: www.ltcmortgages.co.uk
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