Life Insurance: Is Your Coverage Enough?

Experts warn many Americans are underinsured, especially those with young families or long-term care needs.

Published on Feb. 15, 2026

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Roughly half of Americans have life insurance, but fewer own policies that will last beyond their current jobs. Financial advisors say this can leave many families underinsured, especially young workers starting families and older Americans needing to cover long-term care costs. While group life insurance through employers is convenient, experts warn it often provides insufficient coverage. They recommend supplementing with individual term life policies, which can be affordable, especially for younger, healthier individuals. Permanent life insurance policies that build cash value over time are another option for high-wealth households looking to save and invest.

Why it matters

Life insurance is a critical financial tool, but many Americans don't fully understand how it works or purchase enough coverage to protect their families. This story highlights key situations where life insurance is particularly important, as well as misconceptions that can leave people underinsured.

The details

Fewer than 3 in 10 Americans consider themselves knowledgeable about life insurance, according to industry research. Group life insurance through employers is convenient but often provides only 1-2 years' worth of salary in coverage, which may not be enough for many families. Experts recommend supplementing with individual term life policies, which can provide $1 million in coverage for under $600 per year for healthy 30-year-olds. Permanent life insurance policies that build cash value are another option, especially for high-wealth households looking for tax-advantaged savings and investment vehicles.

  • The 2025 Insurance Barometer Study was conducted by LIMRA and Life Happens.
  • The average assisted living facility charged $5,900 per month in 2024, according to a CareScout report.

The players

Justin Dempsey

Senior manager for direct-to-consumer business at The Banner Life family of companies.

Keith Singer

A certified financial planner in Boca Raton, Florida.

Catherine Valega

A certified financial planner in Winchester, Massachusetts.

Holly Snyder

President of Nationwide Life Insurance.

Nick Lamanna

Wealth management advisor at Northwestern Mutual.

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What they’re saying

“For the most part, we see people who are underinsured.”

— Justin Dempsey, Senior manager for direct-to-consumer business at The Banner Life family of companies

“If they give you two years' worth of your salary, then you're basically giving your dependents two years' worth of your lifestyle after you die. And unless your dependents are going to become independent within two years, it's never enough.”

— Keith Singer, Certified financial planner

“Everybody should have private term life insurance. You're young. You're healthy. It's cheap.”

— Catherine Valega, Certified financial planner

“The nice thing about these hybrid products is, someone gets the money back one way or another.”

— Catherine Valega, Certified financial planner

“What people don't understand is that when you have cash value in your policy, you can take a loan against that cash value, and then that money comes back to you tax-free.”

— Holly Snyder, President of Nationwide Life Insurance

What’s next

The story does not mention any specific future newsworthy moments with definite and predictable dates.

The takeaway

This story highlights the importance of understanding life insurance coverage and ensuring you have adequate protection, especially for young families and those needing to plan for long-term care costs. It also debunks misconceptions about life insurance, showing how policies can serve as flexible financial tools beyond just providing a death benefit.