Not Choosing at All. Many people think that they don't need life insurance, or that they can wait until they're older. One thing is certain, getting older doesn't necessarily mean that you'll have more money to get life insurance and it doesn't always mean that that is when you will need the coverage. A lot of single people don't choose a policy because they feel that there is no one to leave the funds to in case of their death, but the high cost of burial and any medical expenses will be left as a burden to their family.

 Choosing Only Work-provided Life Insurance. It is an advantage to have work-provided life insurance because these policies are typically inexpensive or free in some cases. While these policies are helpful, they usually provide a very low amount of coverage that won't cover much except perhaps the burial expenses of the insured. They will not provide living expenses or any type of large payout to the deceased's family.

 Choosing a Premium Amount over Payout. Oftentimes, a person may not feel that they have a lot of money to pay towards a life insurance policy. Some feel that this is something they won't need for years anyway and don't feel that it is important enough to worry about. While a small life insurance policy is better than nothing at all, sometimes you can find a better policy that pays out more, for just a few dollars more per month. You wouldn't choose the cheapest auto insurance or homeowners insurance, so why choose the cheapest life insurance policy?