msn:avoid the Mistakes

One of the most important financial-planning moves you can make is to purchase life insurance. Life insurance is about providing for your family after you're gone. It's about peace of mind and making sure your family is cared for. So many people put off buying life insurance or don't purchase enough coverage. In fact, J.D. Power and Associates points out that 40% of American adults have no life insurance at all, and that 50 million people lack adequate life insurance. Those who do buy life insurance often don't understand how much to buy or what's a reasonable price. The Life and Health Insurance Foundation for Education, known as LIFE, points out on its website that many myths surround life insurance. In my career as a certified financial planner, I've seen a number of families devastated by inadequate life insurance, and my Life Insurance Movement, which takes place today, is designed to combat the misinformation that so often prevails. More Americans need to be aware of the importance of life insurance, and I want to educate them about the vital role life insurance plays in financially protecting families. More than 75 bloggers are taking part in the Life Insurance Movement. A list of participants can be found on Insure.com. Bing: Jeff Rose's Roth IRA Movement Buying life insurance is an important part of good financial planning, and you don't want to mess that up -- your family's future could be at stake. As you purchase life insurance, avoid these six ways to screw up your life insurance purchase: 1. Don't lie on your application. One of the worst things you can do is lie on your life insurance application. It may be tempting to fudge your answers to get a better rate -- maybe "forget" to mention a medical condition. According to LIFE, one of the biggest lies is about tobacco use. Many people know that tobacco is bad for their health -- and their life insurance rates -- so they lie about their use. Other lies involve drug use, depression, income (to qualify for higher coverage amounts) and traffic violations. A life insurance company will probably ask for documentation to back up your medical history, so you could be easily found out -- and denied coverage. A lie can be the basis for a life insurance company to deny your claim. You could be putting your family's security at risk by lying on your life insurance applicat