Life insurance is a crucial tool for comprehensive financial planning. One of its primary purposes is to provide financial security to dependents, like spouses, children, or parents, in the event of the policyholder’s death. Life insurance covers outstanding debts like mortgages, car loans, and credit card balances. However, choosing the right insurance can be challenging, given various factors. In light of this, here are some mistakes to avoid while buying life insurance: Underestimating the coverage Underestimating the coverage may result in an insufficient safety net for one’s loved ones. The coverage differs from person to person based on their financial preferences, general insurance requirements, age, and health. People at different life stages have varying financial responsibilities. Underestimating coverage may occur, especially when individuals don’t consider how life events like marriage, having children, or buying a home can increase their needs. Young people can pay relatively less for a premium, but married individuals with kids should opt for coverage for any lost wages in the event of death. It’s best to consult a professional and factor in future life events to understand how much coverage one may need. Choosing the wrong type of policy There are various types of life insurance policies, each serving different purposes.