Common life insurance mistakes (and how to avoid them)
Published May 23, 2026
A few avoidable mistakes can undermine even a well-intentioned policy. Here are the ones that matter most.
Naming an outdated beneficiary is the classic error — an ex-spouse can legally receive the benefit if the form was never updated. Buying too little coverage to save on premium leaves a gap. Naming a minor child directly (instead of a trust or guardian arrangement) can tie up the payout. Letting a policy lapse by missing a premium can void coverage right when it is needed.
Review beneficiaries and coverage amounts every few years and after any major life event.
Frequently asked questions
＋ Can I name my minor child as a beneficiary?
You can, but insurers usually will not pay a minor directly. Naming a trust or custodial arrangement avoids delays and court involvement.
Related on Life Insurance
Educational content only — not legal, financial, or insurance advice. Requirements and pricing vary by state.