When it comes to protecting your loved ones and securing their financial future, term life insurance is often the most accessible and affordable option. Yet, despite its simplicity compared to other life insurance products, many Americans still make costly and avoidable mistakes when selecting a term life policy.

These missteps can result in inadequate coverage, higher premiums, and even policy lapses that leave families vulnerable. To help consumers make informed decisions, Veritas Financial—an independent life insurance advisory firm—shares the most common errors people make when purchasing term life insurance and how to avoid them.

Misjudging How Much Coverage You Actually Need

One of the most prevalent mistakes is underestimating the amount of life insurance coverage necessary. Many people base their decision on a ballpark figure or a rough monthly budget, rather than taking a comprehensive view of their financial obligations.

Life insurance is intended to replace income, pay off debts, and provide a financial cushion for dependents. A $250,000 policy may sound substantial, but it might fall short when factoring in mortgage payments, college tuition, outstanding loans, and day-to-day living expenses over 10, 20, or even 30 years.

Working with a licensed advisor, like those at Veritas Financial, helps policyholders evaluate their complete financial picture and choose a death benefit that reflects their actual responsibilities and goals.

Choosing the Shortest Term to Save Money

Many consumers opt for the shortest available term—10 or 15 years—thinking they’re saving money. While this may result in lower premiums initially, it can backfire if coverage expires before the financial obligations do.

For example, if your policy ends just as your children are entering college or your mortgage still has a decade left, you could be forced to purchase a new policy at a much higher rate due to your increased age or changes in health.

Veritas Financial recommends aligning your term with your longest foreseeable financial obligation, whether it’s raising children, paying off a home, or supporting a spouse.

Focusing Solely on Price and Not Value

Price is an important factor, but it shouldn’t be the only consideration. Some of the cheapest policies may offer limited conversion options, fewer riders, or may come from companies with lower financial ratings.

Choosing a policy from a well-rated provider—one that allows you to convert to a permanent life insurance plan or includes benefits like accelerated death benefits—can offer greater long-term value. Veritas works with a network of top-rated life insurance companies to ensure clients find policies that strike the right balance between affordability and benefits.

Waiting Too Long to Buy

Another major mistake is waiting too long to purchase term life insurance. Many young adults assume they don’t need coverage until they have children or buy a home. However, buying early typically means significantly lower premiums and better health ratings, which can lock in long-term savings.

Additionally, life is unpredictable. Health conditions can arise unexpectedly, making it more difficult—or more expensive—to qualify for coverage down the road. Veritas encourages clients to view term life insurance as a proactive step, not a reactive one.

Not Comparing Enough Options

It’s easy to fall into the trap of choosing the first insurer or policy that appears in an online search or TV ad. But not all policies are created equal, and not all insurance companies offer the same terms, underwriting standards, or customer service quality.

One of Veritas Financial’s key advantages is its ability to provide independent comparisons across multiple carriers. Their advisors explain the nuances of different policies, helping clients understand not just what they’re paying—but what they’re getting.

Ignoring Riders and Additional Benefits

Term life insurance policies often come with optional riders—add-ons that can enhance the policy’s value. These might include return-of-premium riders, child protection riders, or accelerated death benefits.

Consumers who skip over these options may miss out on features that could significantly benefit their families. Veritas ensures that clients understand all the available enhancements before making a final decision.

Failing to Review and Update the Policy Over Time

Life circumstances change—marriages, births, career shifts, and home purchases all affect your insurance needs. A policy that was suitable five years ago may no longer provide sufficient protection.

One common mistake is the “set it and forget it” mindset. Veritas recommends regular policy reviews—especially after major life events—to ensure coverage remains aligned with current needs.

Naming the Wrong Beneficiaries or Failing to Update Them

It may seem straightforward, but beneficiary designations are often overlooked or outdated. Ex-spouses, deceased individuals, or blank fields can create complications that delay or even prevent the payout of a death benefit.

Veritas helps clients carefully select and regularly update beneficiaries to reflect their current intentions.

The Bottom Line: Get the Right Guidance Early

Term life insurance can be a powerful, affordable tool for protecting your family’s future—but only when it’s done right. With so many policy types, coverage amounts, and carrier options available, working with a knowledgeable advisor makes a significant difference.

Veritas Financial’s client-first approach, independent carrier access, and commitment to education empower individuals to avoid these common pitfalls and make smarter, more confident decisions.

To learn more about term life insurance or to schedule a no-obligation consultation, visit www.veritas-financial.com.