Losing a primary wage earner is devastating emotionally and financially. You cannot prepare a family for the grief, but you can help them prepare for the financial shock, and many households, including clients who already own a policy, are not as well protected as they think.
Key takeaways
- Industry surveys consistently find that many families would feel financial strain within months of losing a primary earner.
- A meaningful share of people who already own life insurance believe they don’t have enough.
- Regular reviews with existing clients are one of the most reliable ways to find and close coverage gaps.
Owning a policy isn’t the same as being adequately covered, and many policyholders know it.
How vulnerable is the typical household?
Consumer research over many years has shown the same pattern: a large portion of households say they would feel the financial impact of losing the main wage earner within a matter of months. Savings run out quickly when a mortgage, childcare and everyday bills continue without the paycheck that covered them.
This isn’t only a problem for families with no coverage. A significant share of people who already own life insurance say they don’t have enough. Often that coverage came through work or was bought years ago and never revisited.
Why coverage falls behind
Coverage that fit a client’s life five or ten years ago can fall short today. Common reasons include:
- Income growth and a higher standard of living
- A larger mortgage or new debt
- More children, or children approaching college
- Reliance on group coverage that may not follow them if they change jobs
- Inflation eroding the real value of a fixed death benefit
A quick look at income-replacement guidelines, such as those in our post on life insurance income multiples, often shows the gap clearly.
Turning reviews into a service habit
Clients going through busy life changes rarely think about their life insurance. That is where you add value. Staying in regular contact and offering a simple annual or periodic review helps keep coverage in line with the client’s life, and it naturally uncovers needs for additional coverage, updated beneficiaries and better policy features.
A consistent review process also strengthens the relationship. Clients remember the advisor who checked in before a gap became a crisis.
How SRS can help
Our team can help you build a simple review process for your book of business, run needs analyses and compare current coverage against today’s products from our carrier partners. Contact us to talk through the clients you’d like to review first.
Frequently asked questions
What does it mean to be underinsured?
Being underinsured means the life insurance in place would not replace enough income or cover enough debts and future expenses for the family to maintain its standard of living after a death.
Why are people with life insurance still underinsured?
Coverage is often bought once and never updated. Income, debt, family size and inflation change over time, and group coverage through work may be too small or may end with a job change.
How often should clients review their life insurance?
A periodic review, often annually or at any major life event such as marriage, a new child, a home purchase or a job change, helps keep coverage aligned with current needs.
Reviewed by Tim Fuller on 2026-09-26
Tim Fuller
President, SRS Inc.
Tim leads SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency), connecting independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners.
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