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With the kids out of the house and retirement shimmering on the horizon, it might be time to give your insurance coverage a once-over ...One of the more troublesome findings of a 2002 survey conducted by the National Association of Insurance Commissioners was that while 67 percent of people claimed to have "just the right amount" of life insurance, 62 percent admitted they did not understand the details of their coverage.

While such a finding speaks volumes about the power of denial, it also highlights the fact that too many people are ignoring their agents' advice to review their coverage on an annual basis.

"Truth be told, the reasons for reviewing a life insurance policy are pretty much the same for everyone, regardless of age," said Jack Dolan, a spokesman with the American Council of Life Insurers. "That is, you're measuring how much money will be needed to replace the income you're generating now and in the future.

"What's different is that life plays tricks on people," he added. "For example, you might be a new empty nester, but at the same time your parents are growing older and might be relying on you for some of their needs. That's what the yearly checkup is all about. It might not be something you're dying to do, but it truly is one of the most important financial decisions a person can make."

Dolan said that "one of many" rules of thumb in reexamining your life insurance policy is that the monetary amount of your protection should be ten times the amount of your income. Some other things to keep in mind when scheduling an insurance checkup:

Term versus whole life insurance? While term life insurance requires the holder to pay for a specified period of time – 20 years, say – whole life insurance requires the holder to pay for the rest of his or her life. But the key difference between the two is that term is "pure insurance" while whole life is a combination of insurance and investment.

"You often see young people buying term life insurance," said Dolan. "But at some of the later stages in life, with more people relying on them and whatnot, people start to realize the advantages of converting to whole."

Of course, these advantages can vary greatly, according to policy. Talk to your insurance agent to get an idea of what type of life insurance is best for you.

Be on the lookout for long-term care needs. With increased life spans, especially among women, and a greater tendency among all people of leaving their hometowns, it might be time to look into long-term care insurance, which covers non-medical services provided in nursing homes and assisted living facilities, as well as at-home care or in other community-based settings. Of course, that's not to say you'll ever need these services, but knowing that you won't be a burden to your loved ones in the distant future might provide some welcome peace of mind. (For more information, check out "Myths of Long-Term Care Insurance")

Go over your parents' and in-laws' insurance needs. According to "Americans and Insurance," a 2005 NAIC study of the correlations between individual life stages and their corresponding insurance needs, 12 percent of families have at least some degree of involvement in the insurance decisions of their aging parents. This percentage is likely to increase as the boomers' parents grow older. Make sure both you and your parents have a working knowledge of the insurance landscape.

"Life is full of surprises and risks abound," said Dolan. "With all the demographers talking about [the boomer] generation living longer and more productive lives, the old cookie cutter approaches to financial planning just don't work anymore. That sit-down with an insurance agent needs to take place, because life insurance is a valuable asset."