For most people, insurance isn't a fun topic to discuss. No one wants to think about dying prematurely, having an accident, going through a natural disaster, or suffering from a crippling injury or disease. Denying that it could happen doesn't make these tragedies any less likely to occur.  However, denial to the point of non-action does make the consequences potentially more devastating than they could otherwise be. Proper insurance planning can make it a little easier to get through tough times.

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Now, you may think that you've taken care of all your insurance needs and might be inclined to skip the rest of this article. After all, you've probably already gone through the process with an agent that discussed every possible type of life insurance anyone could ever possibly need and picked a reasonable policy. Doesn't that mean that you're done worrying about life insurance?

If only it were so easy.  The problem is that the purpose of insurance is to protect you against risks that you face, and because the risks you face change over time, your life insurance needs will change over time as well. Because many people are uncomfortable discussing life insurance, they often keep policies and types of coverage that are outdated and don't adequately fit their real circumstances. Many people also fail to get their first policy because of the perceived 'hassle'.

Here are some guidelines for deciding whether your life insurance is doing its job for you.

The primary reason to get life insurance is to replace money that someone would otherwise earn and provide the funds needed because of a person's death. For instance, if a person is married with a child, then one might consider obtaining life insurance that would be sufficient to replace the person's income, as well as pay for the extra expenses that would result from the surviving spouse's new situation as a single parent.

The challenge is that every one of these variables is constantly changing. Earnings may rise through steady raises and bonuses. Your insurance needs as a single adult may be quite minimal, but they will most likely significantly increase if you choose to start a family. On the other hand, once your children are grown and you have substantial assets accumulated through savings, you may have significantly less need for insurance.

The key is to make sure that the total death benefit on any life insurance policies you have is sufficient to meet your needs at that time. If your insurance is insufficient, look into obtaining additional insurance, either from your existing insurance company or by obtaining a completely new policy. If you have more insurance than you need, then check out replacing that policy with one that has a smaller death benefit.  The savings can be substantial.

And even if your current policy is sufficient, you may wish to consider checking the cost of a new policy with similar terms. Recent changes in actuarial assumptions about people's life expectancies have had a significant impact on insurance prices, especially for older policies. You may be able to save money by replacing your policy.

At the same time, keep in mind that insurance agents often earn commissions on sales of new products. Don't sign up for a new policy unless you understand all of the reasons for doing so, and consider getting a second opinion from another insurance agent if you feel uncomfortable.