Do You Really Have Enough Life Insurance?
Do You Really Have Enough Life Insurance?
Understanding needs vs. assumptions.
“What you don’t know can cost you.” — Anonymous
You may already have a life insurance policy—or maybe one through your employer—and feel like you're all set. But here’s the real question:
Is it enough to protect your loved ones if the worst happened tomorrow?
Most people underestimate how much coverage they actually need. The result? A false sense of security that could leave their families financially exposed at the worst possible time.
Let’s break down how to know what’s enough, and how to fix it if you’re underinsured.
The Life Insurance Coverage Myth
According to LIMRA, over 50% of U.S. adults either have no life insurance or are significantly underinsured. Many assume:
“I have a policy through work, so I’m fine.”
“I’m young and healthy—I don’t need much.”
“I only need enough for my funeral.”
But the reality is: life insurance is for the living—the ones left behind to deal with the emotional and financial fallout.
Employer Coverage: A Great Start, But Rarely Enough
Group life insurance through your employer typically covers 1 to 2 times your salary—maybe $50,000 to $100,000.
Sounds nice, right?
But consider what your family may face if you're gone:
Mortgage or rent
Utilities, groceries, car payments
Childcare or college expenses
Outstanding debts and medical bills
Funeral and burial costs ($9,000–$15,000 on average)
If your family needs your income to stay afloat, your work policy is a temporary patch—not a long-term solution.
How Much Life Insurance Do You Actually Need?
A good rule of thumb:
10 to 15 times your annual income
But that’s just a starting point.
A better way is to calculate based on your actual responsibilities:
Income replacement: How many years would your family need your income?
Debt payoff: Mortgage, car loans, credit cards, student loans
Education funding: College or private school for your children
Final expenses: Funeral, burial, medical bills
Legacy goals: Leaving behind a nest egg, charity gift, or business succession plan
KEyO advisors use a personalized Life Insurance Needs Analysis to help clients find the right amount without overpaying.
Different Needs for Different Life Stages
| Life Stage | Why You Need It | Coverage Focus |
|----------------------|----------------------------------------|------------------------------------------|
| Young Adult | Lock in low rates early | Income replacement, student debt |\n
| New Parent | Protect your child’s future | Income + childcare + education funds |
| Homeowner | Safeguard against mortgage risk | Mortgage payoff + family support |
| Business Owner | Cover business debts, succession | Key person + buy/sell agreement |
| Nearing Retirement | Leave a legacy, offset estate taxes | Wealth transfer, final expense, tax-free gifting |
Signs You May Be Underinsured
❌ You haven’t reviewed your coverage in 5+ years
❌ You’ve experienced life changes (marriage, kids, home purchase)
❌ You only have a policy through work
❌ You can’t confidently say what your policy pays or for how long
❌ You haven’t planned for future inflation or rising expenses
If any of these sound like you—it’s time for a checkup.
How KEyO Insurance Services Can Help
At KEyO, we don’t believe in guesswork. Our advisors provide a free, no-pressure review of your current coverage and make professional recommendations based on your life today—and tomorrow.
We offer:
✅ Term life for affordable protection
✅ Whole life and IUL for permanent coverage and cash value
✅ Final expense options for seniors and legacy planning
✅ “3-pay” plans for kids that grow tax-advantaged wealth
With Trusted Care. Tailored for You., we make sure you have enough—and not a penny more than you need.
Final Thought:
Having “some” life insurance is not the same as having enough. Don’t wait for a wake-up call. Let KEyO help you ensure your family’s tomorrow is fully protected today.
