We all know we are going to pass on someday, but none of us really like to think about or plan for our death while we’re enjoying all that the here and now has to offer. As a result, life insurance is one of the most undervalued investments consumers make today. Families often make the mistake of procrastinating on their life insurance decisions, viewing it as more of a “fringe” benefit than a necessity. In fact, according to a 2015 Bankrate report, 37% of parents with young children do not have life insurance. Among those who have taken out a policy, more than half have less than $100,000 in coverage.

Your life insurance policy, however, is one of the most important investments you can possibly make, ensuring your family is taken care of after your unexpected death. Given its importance in easing a very difficult time in your family’s lives, it’s critical that you avoid these common mistakes, when considering this valuable investment.

Undervaluing Yourself

If you’re going to spend the time and money investing in a life insurance policy, you want to do it right. Many consumers are attracted to policies in whole numbers, such as $50,000 or $100,000. But the reality is, for even a small family, this is not enough coverage.

Consider your mortgage, college education for the children, and burial expenses. Those are just a few of the bills your family will be burdened with, upon your death. For many of us, $100,000 would not even pay off the mortgage balance.

The purpose of the policy is to provide long-term relief for those you’ve left behind. That $10,000 policy provided through your employer will barely cover funeral expenses, much less provide any sort of a cushion for your loved ones. A great rule of thumb is to purchase 10 to 12 times your income in life insurance coverage. That might sound like a lot on paper, but consider the goal of the policy and how far the dollar really goes. Term policies are incredibly cheap – less than the cost of your daily coffee. Wouldn’t you rather spend a few extra dollars today to ensure your family’s stability in the future?

Waiting Too Long to Purchase

Planning for your death is one of life’s unpleasantries, so it’s only natural that you would want to put it off until a later date. Waiting, however, can come with a hefty price tag.

The earlier in life that you purchase your life insurance policy, the lower your rates will be. By waiting, you’re guaranteed to pay a higher premium and run the risk of facing health issues that could make you uninsurable or, at the very least, will increase your annual premium.

Roughly 2/3 of U.S. consumers put off buying an insurance policy due to perceived cost. A few dollars saved today, however, could cost you hundreds of dollars later.

Buying Too Short of a Term

The purpose of investing in a term life insurance policy now is to prepare for the unknown. While you will (hopefully) still be around in 10 years, a lot of things can change in that time that could result in an increase in premium or uninsurability.

So, how should you determine the length of the term you will need to purchase? A good rule of thumb is to purchase based on when your children will be living on their own and/or when your financial commitments, such as your mortgage will be fulfilled. If the mortgage is paid off in 17 years and your child will be out of college in 15 years, a 20-year policy may suffice.

Not even married yet, much less have children? This is the optimal time to buy a 30-year term policy. The reality is, everyone’s financial situation is unique and there’s no way to predict the future – it’s always better to err on the side of caution.

Not Purchasing the Correct Riders

When it comes to buying insurance of any kind, it’s human nature to shy away from adding all the “bells and whistles,” under the assumption we’ll will never really need them. But most term life policies come with the option to add riders that could prove beneficial in the future, without a significant increase in premium. Each individual’s situation is unique, so there is no umbrella rule when it comes to the addition of riders. Consult with your insurance agent to determine which riders could benefit you the most.

Choosing a Policy Based Solely on Price

When given the choice, we as consumers have been trained to immediately lean towards the cheapest alternative. When it comes to life insurance, however, the cheapest option isn’t always the right way to go.

Rather than choosing a policy based solely on cost, start by considering your options and comparing those with the needs of the family members you’re looking to protect. Consult with your insurance agent and have them explain the various policies, features, riders, and financial security of the insurance company. Once you’ve made an ordered list of who best meets your needs, you can then factor price back into the equation.

Undervaluing a Non-Working Spouse

When considering a term life insurance policy, many do so in order to protect against the unexpected death of the “breadwinner.” Obviously, this is a wise choice, but what about the non-working spouse? Or the spouse that brings home less than their significant other?

While you might be tempted to forego a policy for them, this is not a wise choice. Consider all the things your spouse does day in and day out. If you are suddenly left as a single parent with a full-time job, how much time will you really have to devote to household activities? Who will mow the lawn, pick the children up from school, or clean the house? Proper life insurance coverage for homemakers should always be an integral part of your financial plan.

Life insurance is a major component to building a healthy financial strategy. All of us would love to think that we’ll be around until age 95, but the reality is, life has been known to throw us a few curveballs. Don’t put off purchasing a term life policy – the effects could prove devastating for those left behind. Take the time to understand your policy, the riders, and who benefits upon your death. Be sure to review your policies with your insurance agent every few years, or as major life changes occur. The agents are there to help you navigate the many options out there and assist you in choosing the best option for your individual needs.