This is a terrific article by Kimberly Palmer published in USNEWS.COM I have actually wanted to write a similar article for some time. People often make rash and harried decisions when tough economic times are prevalent. For some reason it always seems that the Life Insurance Policy is at the top of the list to get scrapped as to save money.
Kimberly does a terrific job explaining just why that might not be a great idea, and why you may just need more Life Insurance Coverage.
Please read snippets from the original article and visit the post…
Why you should take out more insurance, not less
For most people, talking about life insurance sounds almost as fun as eating rotten fish. And while ignoring it can compound a family tragedy by turning it into a financial nightmare, more and more people are doing just that. A recent survey by the nonprofit LIFE Foundation found that one in four Americans would consider canceling theirin order to save money during the recession.
Before making that kind of drastic decision, consider these seven insurance mistakes you’re probably making—and you might decide to buy more insurance, not less.
In fact, one in three adults have no life insurance at all, says Steven Weisbart, chief economist for the Insurance Information Institute. Of the remaining people, many of them have only the insurance that comes from their workplace policies, which is usually not enough for people who want to support dependents after their death.
Forgetting the long-term. People often lose track of how long the life insurance payout should support their children and other dependents after they die, says Easley. “If you have a child who’s ten, in 15 years, they’ll be out on their own,” he explains, so in that case, term coverage that will provide support for those 15 years likely makes the most sense.