While it isn't exciting, or even fun to think about for many people, if your life has changed significantly since the purchase of your life insurance policy, chances are you need to make some changes to your coverage.

For example, if you've had another child, you'll definitely want to add more coverage. Be sure to consider things like monthly living expenses, along with college educations, and other big ticket expenses.

Another common financial situation that many Americans face occurs when aging parents need care. If you are supporting your parents, you'll want to consider that when you review your life insurance policy. How much money would be required to care for them? What about long term care and hospice care?

And of course, if your spouse or child has become disabled you will need to factor in their long term care, medical needs, etc.

Just keep in mind that if you're renewing a policy, you'll need to get a medical exam, especially if you're trying to get more coverage. If you're not healthy, or if you're over a certain age, you will see the difference in higher premiums.

If you find that health issues have left you with high life insurance premiums, try reapplying later. With a clean bill of health, you might be pleasantly surprised to see a rate decrease.

If your employer offers some coverage, and you plan to rely on that, keep in mind that once you're no longer employed with them (for example when you retire) you will no longer be eligible for their coverage. At the same time, the older you get the more expensive your coverage will be. Unless you have a significant retirement package coming up, it's wise to get extra life insurance on top of what is traditionally offered by employers.

Many people find themselves getting more coverage from their life insurance in later years, but that's not always the case by any means. If you've managed to put away a lovely little nest egg, and your children are grown now, then you might just want to cut back on your coverage. In the event of your passing, your spouse can live on your savings and your children will be old enough to care for themselves.

Should you switch to a different type of life insurance? Is whole life better than term? That depends on many issues, including how much coverage you need, what you can afford to pay every month, and how long you intend to keep the policy.

Speak to a knowledgeable life insurance broker about these issues, and don't rush into a decision. Life insurance is a very important form of financial security, and deserves the extra time and energy required to do some homework and find the best policy for you.