If you are considering canceling a current policy, you may well want to think about these 7 blunders individuals make with their life insurance before you do.

1. "I'm all prepared for life insurance!"

According to a recently available survey of medium income Americans, most respondents felt that people should have some life insurance, but felt that it should only be enough to cover current debt and funeral costs. Surprisingly, only about 20% felt that term life insurance should compensate the wages of the deceased for the surviving family's sake.

In truth, having a life insurance policy that is comparable to seven to ten times one's current salary is the least recommendation for someone with young little ones.

2. "Life insurance? I'd rather not talk about it."

For the majority of individuals, wondering about death is more than a little uncomfortable. Yet, almost all people do want to make sure their loved ones are financially protected after their passing.

Locate a couple of minutes to sit down with your mate and ask the question, "How would you and the kids make it if I were to pass away?" It is crucial to address this question at this time.

3. "My dad told me to have coverage equivalent to 7 times my salary."

In today's culture, that is not as effective of a measure because of the different life situations found today. Many dynamics that were not so common 50 years ago can be found readily today. An individual person with no dependents has much less of a need for insurance than the family with a stay at home spouse and 4 young young children.

A more specific method is to make a list of the details that you want to protect. How will your spouse manage the mortgage, taxes, utilities, put food on the table, care for the car, etc?

4. "I never thought of that."

Benefits such as health insurance, pension accounts, youngster care credits, etc. all cease at the death of an employee. The subject that needs to be made then is, " If I die, that subsidy disappears. How will my family pay for health-care after I'm gone?" Part of the answer of course is to make sure your term life insurance policy will pay enough funds to cover the new health insurance bill.

5. "I'm too busy to worry about life insurance now."

It's simple to lose sight of the long term view when we are so consumed with handling our day to day lives. A general guideline is to intend that your kids will be "dependent" until age 25 due to college and finding a profession. If your youngest is 10 today, you would want to have at least a 15 year policy to cover that risk period.

6. "It's too costly."

That is a huge error in thinking, as it is possible to find a policy that fits your needs and your budget. Today, term life insurance is much more affordable than permanent insurance, and is the perfect instrument for balancing your financial exposure.

7. Bought it and forgot it.

Are you the same person now that you were 5 years ago? If we are honest the response is, "No." Maybe there have been some changes to your lifestyle such as getting married, having kids, buying a house, etc. These significant life events are exactly why you should go over your life insurance policy at regular intervals to make sure that your policy covers your "new" situation.

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