Do You Really Have Enough Life Insurance?

(Probably Not—And Here’s Why)

It’s a question most people avoid asking: Do I need life insurance—or more of it?

The truth? Nearly 102 million Americans say they’re either uninsured or underinsured. That’s 42% of the country!¹ And since that number is based on people self-reporting, the real figure is likely even higher.

But here’s the kicker: even those who think they have enough coverage are often underestimating what their families would actually need.

Why $1 Million Might Not Be Enough

On paper, $1 million sounds like a fortune. But let’s put it in perspective.

If your spouse invested that $1 million to provide income for the rest of their life—while keeping up with inflation—the payout might only be around $30,000–$40,000 a year. That’s not guaranteed either.

Now ask yourself:

• How much do you earn right now?
• If you were gone tomorrow, how would your family replace that income?
• What about extra costs like college, weddings, or even helping kids buy their first homes?

For example: If you’re 45, making $200,000 a year, and don’t have a lot saved for retirement, your family might need $5–7 million in coverage just to keep their lifestyle intact. Suddenly, that $1 million policy doesn’t look so big anymore.

The Good News: It’s More Affordable Than You Think

Here’s what surprises most people—life insurance can be incredibly affordable.

Take our same 45-year-old example:

• A $1 million, 20-year term policy with a reputable insurer could cost around $170/month for a man in decent health, or about $130/month for a woman.
• Many policies also come with perks like the ability to convert to permanent coverage later or access part of the death benefit for chronic care needs.

In other words, for the price of a few streaming subscriptions, you could be protecting your family’s entire financial future.

How to Get Started

If you’re not sure where to begin, here’s a simple two-step plan:

1. Calculate your needs. Use the Life Insurance Needs Calculator from Life Happens. It’s quick, free, and eye-opening.
2. Work with someone you trust. Cheap coverage might sound good now, but the wrong policy can cost your family dearly later. For example, a rock-bottom plan may not let you convert to permanent insurance if your health changes. That’s a benefit you don’t want to be without.

A Final Thought

September is Life Insurance Awareness Month—a perfect time to hit pause, think about your loved ones, and make sure they’re protected.

At the end of the day, buying enough life insurance is really just another way of saying: I love you, and I’ve got you covered.

1. Limra 2024 Insurance Barometer Study: Life Insurance Statistics, Data and Industry Trends 2025 – Forbes Advisor