Don't drop your life insurance

If you're thinking about dropping your life insurance premiums to save a few bucks, you're not alone. According to a 2010 report from life insurance research group LIMRA, 35 million U.S. households have no life insurance coverage, an increase of 11 million households since 2004. More than 40 percent of Americans say fiscal 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.