1. Relying Solely on Employer Life Insurance
Your employer's group life insurance is a great benefit — but it's not enough. Most group policies cap at 1-2x your annual salary, which falls far short of what your family would actually need. Worse, it disappears the moment you leave the company.
The fix: Get a personal term life policy that covers your full needs. It's portable, it's locked in at your current age and health, and it doesn't go away with a job change.
2. Skipping Disability Insurance
Most people in their 30s insure their car, their phone, and their apartment — but not the thing that pays for all of it: their ability to earn income. The odds of a long-term disability before age 65 are roughly 1 in 4. That's not rare.
Check what your employer provides, then supplement if needed. Aim for coverage that replaces at least 60% of your income.
3. Being Underinsured on Homeowners Coverage
Home values have changed dramatically. If you haven't reviewed your homeowners policy recently, your coverage may not reflect what it would actually cost to rebuild your home at today's prices. This is especially true if you bought your home several years ago.
Make sure your policy covers replacement cost, not just market value or actual cash value.
4. Not Having an Umbrella Policy
An umbrella policy provides extra liability coverage beyond your auto and homeowners limits. It typically costs $200-400 per year for $1 million in coverage. If you own a home, have savings, or have any assets worth protecting, this is one of the best values in insurance.
5. Not Updating Beneficiaries
Getting married, having kids, or getting divorced should all trigger a beneficiary review. If your life insurance policy still lists an ex or a parent from when you were 22, the payout won't go where you intend. This takes 10 minutes to fix — do it today.