Why Employer-Only Life Insurance May Not Suffice: Key Insights for 2026

Americans' life insurance coverage is often inadequate. About 55% of working adults rely on group coverage through employers, typically providing only 1-2 years of salaries, which ends upon job departure. Fewer than 30% consider themselves knowledgeable about life insurance, and over half of policies may expire with employment. Financial advisers recommend supplementing group coverage with individual term policies, especially for younger, healthier workers. A $1 million, 30-year term policy for a 30-year-old can cost less than $600 annually. Hybrid policies with long-term care riders can fund care without reducing the death benefit. However, life insurance is less critical for retirees, those without dependents, and older individuals where premiums may outweigh benefits. Long-term care needs, costing an average of $5,900/month in 2024, highlight a growing unmet insurance need.