When was the last time you reviewed your life insurance coverage with your current life style, financial and family situation? As with many financial issues, we often make a decision (buy a policy, make an investment) then check it off as “done”.

It’s smart to take a periodic look to see if your life insurance policy still meets your needs and compare prices on current policies. With many of us facing a drop in our retirement funds, life insurance may play a more important role than ever in assuring financial security for family members.

What  major life changes should trigger a look at the amount of life insurance coverage you have?  Here are just a few :

• Marriage or divorce
• A child or grandchild who is born or adopted
• Significant changes in your health or that of your spouse/domestic partner
• Taking on the financial responsibility of an aging parent
• Purchasing a new home
• Caring for a loved one who requires long-term care
• Refinancing your home

One situation that a growing number of baby boomers are facing is caring for an aging parent or loved one.  Assistance can take many forms.  It may be financial assistance in paying bills or paying for special events, such as trips to see the grandchildren.  Or you may be providing caregiving assistance, such as dropping in every day to check up, taking care of household chores such as cleaning, grocery shopping and outside maintenance, or traditional caregiving duties such as staying in their home for a period to assist with everyday activities. 

If something were to happen to you, would there be money available to hire someone to cover what you are doing?  Does your will reflect how you would assure that funds could be directed for their care? 

If there has been a major change in your life, make sure that your life insurance is at a level that it will still do what you want it to do.  Make sure your beneficiary information is current and the policy is in a safe place so family members can easily find it.

 Advocates have long encouraged consumers to monitor their credit reports as a way to detect identity theft.  But, your credit report has information that also affects whether you can get a loan – and how much you will have to pay to borrow money. And auto insurers have been using credit score as a predictor of risk for a number of years.  And, employers often check credit score before they decide whether to offer you a job. So an error in your credit report can cost you.

 Getting Your Report

You should get a copy of your credit report to: 

• make sure the information is accurate, complete, and up-to-date before you apply for a loan for a major purchase like a house or car, buy insurance, or apply for a job 
• help guard against identity theft. That’s when someone uses your personal information – like your name, your Social Security number, or your credit card number – to commit fraud. Identity thieves may use your information to open a new credit card account in your name.

 The Fair Credit Reporting Act requires each of the nationwide consumer reporting companies – Equifax, Experian, and TransUnion – to provide you with a free copy of your credit report, at your request, once every 12 months. The three companies have set up one central website, toll-free telephone number, and mailing address through which you can order your free credit report. See the box for web, phone and mailing address.  Make sure if you request a credit report you only use this information.

 Only One Official Site

Many other websites claim to offer “free credit reports,” “free credit scores,” or “free credit monitoring.” But, be careful. These sites are not part of the official annual free credit report program. And in some cases, the “free” product comes with strings attached. For example, some sites sign you up for a supposedly “free” service that converts to one you have to pay for after a trial period ends. If you don’t cancel during the trial period, you may be agreeing to let the company start charging fees to your credit card.

 These sites often look like the official site at http://www.annualcreditreport.com. Some use terms like “free report” in their names; others have website names that purposely misspelled  in the hope that you will mistype the name of the official site. Some of these “imposter” sites direct you to other sites that try to sell you something or collect your personal information.

If you want to order your free annual credit report online, go to : http://www.annualcreditreport.com , or go to the FTC’s website (http://www.ftc.gov) which has a link to it. Once you have filled out certain information , you will be directed to individual websites operated by the three nationwide consumer reporting companies..  You may get offers to buy additional products or services while on the companies’ websites, such as credit scores or credit monitoring products, but you are not required to make a purchase to receive your free annual credit reports. You’ll have to pay extra to get your credit score.  But, your credit report is free

 If you get an email or see a pop-up ad claiming it’s from annualcreditreport.com or any of the three nationwide consumer reporting companies, do not reply or click on any link in the message – it’s probably a scam. http://www.annualcreditreport.com  will NEVER send you an email solicitation for your free annual credit report, use pop-up ads, or call you to ask for personal information.  

 Take the time to check your credit report.  If  you find an error, notify the credit agency that issued the report.  They are required by law to investigate items that are disputed.

If you have ever dieted (and that is most of us) you know the euphoria of losing that first few pounds. Then time goes on, what’s new becomes old…you find yourself rationalizing more frequently “just this once.”

We’re entering a similar danger zone in financial planning.  How you react to the more upbeat economic news could have a significant impact your financial success in living the life you want.

Here are five tips for staying on course.

1. Keep spending and saving in balance. If you feel you’ve reached the right balance with your spending and savings, keep at it. If not, keep working. Make sure you have your emergency fund in place (three to six months worth of expenses) and keep contributing to your retirement savings, even if your company has stopped matching.  If you are 50 or older take advantage of the “catch up” provisions of 401(k) and IRAs.

A move toward greater simplicity and a “less is more” attitude is growing in popularity.  A recent study by the Natural Marketing Institute (NMI) found over half of baby boomers believe they can “live a more satisfying life by having fewer possessions.”

2.  Keep your debt under control. The debt monster pulled many people under in this economic crisis. If too much debt has been your financial Achilles heel, don’t go back to your old ways.  Keep reducing the debt on which you are paying interest.  And don’t be lured into increasing those balances with new purchases.  And if you are readying for retirement, make debt management a high priority.

3.  Do the math on retirement income. Stop guessing and start figuring (on your own or with the help of a financial planner) what your expenses will be in retirement.   Get up-to-speed on Medicare and Social Security.  Be realistic about how long you’ll need to work or if you need to go back to work.

If you are already retired, how much can you be withdrawing safely without worrying about running out of money?  Have you looked at options for guaranteeing some income through an annuity if you don’t have a defined benefit pension plan?

4. Use insurance to protect yourself from the big risks. Life insurance long-term care insurance, health insurance, and auto/home insurance protect you from catastrophic risk.  If your financial situation has changed, get help from an insurance agent or financial planner on whether your current insurance coverage needs to be adjusted. Try these sites for quotes: life insurance – http://www.iquote.com; long-term care insurance http://www.ltcq.net ; Medicare health plans- http://www.laihealth.com.

5.  Be on alert for scams. Scams proliferate in a period like this as people look to take advantage of swings in the stock market and stimulus money begins to flow. You’ve seen the ads offering free money, warning you not to be left out of the next big money maker.  Don’t fall for it.

Following these five steps will help you keep on track to reach your financial goals.