Don't drop your life insurance

Consider other options

If you have life insurance but have considered ditching it to save a few bucks, you're not alone. According to the most recent six-year study from life insurance research group LIMRA, 35 million U.S. households had no life insurance coverage in 2010, an increase of 11 million households from 2004. More than 40 percent of Americans say financial pressures are one reason life insurance isn't a priority.

The problem with letting go of your life insurance to save money is that in the event of a disaster, it could wind up costing your family thousands they may not be able to afford. Even when you're ready to get your insurance back, there's a good chance you'll pay substantially higher premiums if your health or age has significantly changed.

Industry experts say that for those facing hard economic times, dropping coverage isn't the only option. Here are a few alternatives to dumping your insurance.