GoBankingRates: “4 Insurance Mistakes Most People Make — and How To Avoid Them”

GoBankingRates.com, Sept. 26, 2025 — Marguerita Cheng, CFP® Pro, is featured in today’s video and article by Laura Bogart, who writes, “Purchasing life insurance is one of those milestone moves that makes you feel like a grown-up. It’s a sign that you’re ready to protect your family financially and prepare for the unexpected or even get strategic about how you build long-term wealth. But that doesn’t mean it’s an easy decision. From underestimating your coverage needs to misunderstanding different policy types, even well-meaning individuals can make costly mistakes.”

GOBankingRates spoke with Marguerita Cheng, CFP, CEO of Blue Ocean Global Wealth, as part of our Top 100 Money Experts series. With over two decades of experience and recognition from Investopedia, InvestmentNews, and the Financial Planning Association, Cheng has seen the consequences of poor insurance planning — and she wants to help you avoid them.

Marguerita says: Here are four of the most common insurance mistakes, and what to do instead.

1. Not Understanding the Need for Life Insurance: All too often, people (perhaps you?) get caught up on other financial goals, like investing, building an emergency fund, or saving for retirement — and put life insurance on the back burner. You may assume that the coverage you get through your employer is enough, or that all insurance policies are created equal. Neither is true.

2. Overpaying or Choosing a Policy That Doesn’t Fit Their Life Stage: Life insurance isn’t one-size-fits-all — and failing to match your policy to your current life stage or goals could lead to overpaying. OOne of the best ways consumers can ensure they are not overpaying for coverage is to have a combination of both group and individual coverage.

3. Thinking All Insurance Policies Serve the Same Purpose: It’s easy to think one life insurance policy is just like another, but the type of coverage you choose can have a big impact on how well it supports your coverage needs and financial goals.

4. Getting Overwhelmed and Avoiding It Altogether: It’s all too easy to put off getting life insurance — the process can feel stressful and overwhelming. Cheng wants you to take the time to find someone who can help you find the best policy for your situation.

That’s just a taste of Marguerita’s insights on these 4 tips. Click here to read more on GoBankingRates.com.