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Life insurance · Income for your family
If your paycheck stopped tomorrow, how long would your family be OK?
Life insurance is not really about dying. It's about the people who count on your paycheck: the mortgage, the groceries, the kids' school. Here is how it works, in plain words.
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The short version
- Nearly half of U.S. adults (47%) say they would have trouble paying living expenses within 6 months if the main earner died.
- Only 29% say they would stay financially secure for more than 2 years.
- About 92 million adults (38%) say they need life insurance or need more of it.
- Nearly half of people who own life insurance (47%) have it through work. Check what happens to it if you change jobs.
- Life insurance pays your family money when you die, so the paycheck you leave behind can keep paying the bills.
Your biggest asset is your paycheck
Most people insure their car and their house. But for a working family, the most valuable thing is often the paycheck. $50,000 a year for 25 more years is $1.25 million.
When we help a family choose an amount, we look at four things:
- Income: how many years your family would need your paycheck.
- The home: what's left on the mortgage, or how many years of rent.
- The kids: childcare now, and trade school or college later.
- Debts and final costs: the car payment, credit cards and the funeral.
Why people buy it
In the 2026 study by LIMRA and Life Happens, the top reasons people gave for owning life insurance included covering burial and final expenses (57%), replacing a wage earner's lost income (27%) and paying off the mortgage (21%).
Keeping the family in the home
For many families, the home is where the kids' school, friends and church are. If the main paycheck stops, the mortgage can be the first bill to fall behind.
Life insurance can pay off the mortgage or cover the payments for years, so nobody has to move at the worst possible time.
The kids' future
Life insurance can put money aside for daycare now and for trade school or college later. You decide who receives the money, and you can name more than one person.
If your kids are young, ask us how to set up the beneficiary the right way, so the money can actually be used for them.
Is coverage through work enough?
Coverage through work is a good start. But it is usually tied to the job. If you change jobs, get laid off or retire, it may end.
The amount is also often small compared with what a family needs, for example one or two years of pay. A personal policy stays with you, wherever you work.
What if you live, but can't work?
Life insurance pays when someone dies. But a long illness or injury can also stop a paycheck. Social Security says a 20-year-old worker has a 1 in 4 chance of becoming disabled before full retirement age.
Social Security disability is only for conditions expected to last at least a year, and it generally starts after a 5-month wait. Some life policies have extra options (called riders) that can help if you become seriously ill. Ask us what is available for you.
The numbers behind it
47%of U.S. adults say they would have trouble paying living expenses within 6 months of the main earner's death.Source: LIMRA and Life Happens
29%say they would remain financially secure for more than 2 years if a main earner died.Source: LIMRA and Life Happens
92 millionadults (38%) say they need life insurance or need more coverage.Source: LIMRA and Life Happens
47%of people who own life insurance have coverage through their workplace.Source: LIMRA and Life Happens
54%say their family would rely on life insurance if a main earner died unexpectedly.Source: LIMRA and Life Happens
1 in 4is the chance a 20-year-old worker becomes disabled before full retirement age, says Social Security.Source: Social Security Administration
Five questions to ask yourself
- If my paycheck stopped today, how many months could my family pay the bills?
- How much is left on the mortgage?
- How many years until my youngest child finishes school?
- Is my only life insurance through work? What happens if I leave that job?
- Who is the beneficiary on my policy, and is it up to date?
- Not sure? Send us your policy, or your work benefits page, and we'll check your coverage.
Keep reading
Frequently asked questions
How much life insurance do I need?
There's no single number. Start with how many years your family would need your income, add what's left on the mortgage and other debts, then add future costs like your kids' education. We can do the math with you in a few minutes.
What is the difference between term and permanent life insurance?
Term life covers you for a set number of years, for example 20 or 30, often while the kids are growing up and the mortgage is being paid. Permanent life insurance, such as whole life, is meant to last your whole life and can build cash value.
Does a stay-at-home parent need life insurance?
Often, yes. If a stay-at-home parent dies, the family may suddenly need to pay for childcare, rides to school and help at home. Life insurance can help pay for that.
Is my coverage through work enough?
It is a good start, but it is usually tied to the job and the amount is often small. Check how much you have and what happens if you leave the job.
Can I get life insurance if I have health problems?
Often yes, but it depends on the person and the policy. Some policies ask health questions or need a medical exam, and others ask fewer questions. We will help you look at the options.
Who gets the money?
The people you name as beneficiaries. The money usually goes to them directly. If your kids are minors, ask us how to name them the right way.
How long would your family be OK? Let's find out.
Send us your policy and we'll check your coverage, including coverage through work. A licensed agent will walk you through it in plain words. We call back within 1 hour during business hours.
Send us your policy and we'll check your coverage →📄 Send us your policy – we'll check your coverage
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This page is general information, not legal, tax or financial advice, and not policy language. What a policy pays depends on its terms, and approval depends on the insurer. Stories marked "Example" are made up to explain the idea. Statistics come from the public sources linked below.
Sources
Facts on this page were checked against these sources on October 3, 2026.