I shared some information not too long ago from the Life Insurance Market Research Association (LIMRA) and the bottom line was that studies showed that American families were generally under insured, knew they were under insured, but in general weren’t real sure what to do about it.

In honor of Life Insurance Awareness Month, LIMRA has put out new information that is a call to battle for every life insurance agent, and let’s face it, every person out there who knows they are under insured.

You know, I hardly ever get on anyone’s case, but it’s Friday so here goes. For all of you folks who are uninsured or under insured and just aren’t sure how to fix that problem, allow me to make a suggestion.

There are nearly as many places to buy life insurance via the internet as there are people in this country. First step I want you to take is go plug in to someone somewhere and buy some insurance. Buy enough that you definitely are not under insured any more. Notice that I am leaving the shopping and research out of this, so no matter what is suggested, buy a 10 year term so you can keep the price down.

Now, you have just solved one problem. You are no longer under insured. This is a really, really good thing. On to the next issue. How do I know I have the right amount? You need to know this, because we just plugged the hole to make darn sure the dam doesn’t leak. It’s possible you over killed. Use this calculator and see how you feel about the amount. If you have too much, the next time it comes due, replace that policy with a smaller one.

This time around give more serious thought to term length. Now that you have the right amount you want to be sure it’s there for as long as you will need it. In a previous post I covered some ways to determine term length.

Bottom line. If you are smart enough to know you are under insured, wake up….you are smart enough to know how to patch the hole in that problem. It doesn’t have to be done perfectly. I mean really, can you imagine your wife’s disdain. “What an idiot! If he would have taken more time to plan, he would have known we didn’t need $750,000. I used that insurance calculator thing and we really only needed $680,000. Now we have more money than we need” If you fail to act it will go something like this. “What an idiot! Instead of getting off his over-analytical rear end and buying some term insurance, he leaves us with the insurance from work that replaces one year’s income. Now what are going to do.”