When it comes time to make a major purchase, you know how important it is to do your homework. You wouldn’t buy a house without first checking out comparable sales, the schools and neighborhood, or a car without first comparing it to others in the class or taking it for a test drive.

So why is it that so many people buy life insurance policies that don’t offer their families adequate protection? Perhaps they’re getting bad advice, or no advice at all. Here are some common mistakes people make when buying life insurance:

1) Letting premiums define your decision – The amount you’ll have to pay for a premium shouldn’t be your only consideration. It’s also important to factor in the financial strength/integrity of the insurance companies quoted, as well as important product features such as renewability privileges, conversion rights, available riders and how long the rates are guaranteed.

2) Thinking that buying life insurance is a one-time activity – Evaluating life insurance needs is an activity that must be conducted on an ongoing basis. At least every year or two re-examine your policies to be sure they are still doing the needed job. For example, your circumstances may have changed (marriage, divorce, or birth) and the amount of insurance may no longer be adequate.

3) Forgetting to change beneficiaries – Divorce, death, birth or other life circumstances may dictate a need to change beneficiaries. Imagine seeing the death benefits from a policy on your recently deceased spouse go to that person’s former spouse instead of you.

4) Canceling a policy when you don’t have a new one in force – Sometimes it is appropriate to switch companies, especially since term life insurance rates have dropped dramatically over the past 10 years. But before dropping a policy, make sure the new one is in force. You don’t want to find out after dropping your old policy that you can’t qualify for a new one due to new health conditions you weren’t aware of.