{
  "id": 9168988,
  "title": "Do you have enough life insurance? A quick coverage check-up",
  "url": "https://urgent.news/2026/09/22/do-you-have-enough-life-insurance-a-quick-coverage-check-up",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-22T16:58:10.000Z",
  "source": {
    "name": "CBS News",
    "slug": "cbs-news",
    "url": "https://www.cbsnews.com/news/do-you-have-enough-life-insurance-quick-coverage-check-up/"
  },
  "original_language": "en",
  "account": "Life insurance is often purchased around significant life events, such as marriage, homeownership, or childbirth. While the policy itself may remain unchanged for a long time, the financial circumstances it was intended to protect can change over time. Income can increase, debts can grow or shrink, and families can acquire new financial obligations. Consequently, a life insurance policy that once provided adequate coverage may need to be reassessed after a few years. Periodically reviewing your life insurance policy is an important aspect of a broader financial check-up. Instead of solely focusing on the dollar amount listed on your policy, it may be more beneficial to consider the specific tasks that money would need to accomplish if your family had to rely on it.\n\nDetermining whether you have sufficient life insurance coverage involves several steps. First, calculate the income your household would need to replace. Consider how much of your income others depend on and how long they would require financial support. For instance, if you are the primary earner with young children, your life insurance coverage should be capable of replacing multiple years of income. On the other hand, if your spouse earns a substantial income and your children are financially independent, the calculations might differ significantly. Additionally, don't overlook the value of unpaid work performed by a stay-at-home parent, such as childcare and household management. These tasks can have a significant monetary value when factored into your coverage decision.\n\nNext, inventory major financial obligations that your family may face without your presence. This includes expenses like mortgage payments, certain debts, childcare costs, college expenses, and final expenses. The aim is not to cover every future expense but rather to identify which costs could put undue pressure on your household and which ones you would want the death benefit to address. Life stage plays a crucial role in this process. For example, someone who recently purchased a home and had a child may require different coverage than someone nearing retirement with a paid-off mortgage and substantial savings. Subtract the financial resources your family already possesses, such as savings, investments, existing life insurance policies, and other assets. If your calculations indicate that your family needs $1 million to cover income replacement and major financial obligations, but you have $250,000 in assets earmarked for those purposes, this will impact the amount of additional insurance required.\n\nMoreover, be cautious about counting assets your family might need for other purposes, such as draining retirement savings or an emergency fund. Doing so could create additional financial shortfalls in the future. It is also essential to consider whether your life insurance coverage aligns with your current life stage. Significant life changes, such as marriage, divorce, a new child, a home purchase, a career change, or taking responsibility for an aging parent, can alter the equation. Regularly reviewing your life insurance policy and conducting a financial check-up after major financial or family changes can help identify coverage gaps before they become a problem. For example, marriage, divorce, a new child, a home purchase, a significant raise, or assuming responsibility for an aging parent can prompt a review of your policy. Your needs may change in the opposite direction as well, such as through paying off a mortgage, accumulating substantial assets, or children becoming financially independent.\n\nFinally, consider whether the type of coverage still suits your needs. Term life insurance generally provides coverage for a set period and is suitable for temporary needs like replacing income while children are young or covering a mortgage. Permanent policies, such as whole life insurance, are designed to remain in force for life as long as the required premiums are paid and may also accumulate cash value. Neither option is inherently superior to the other; the right choice depends on your objectives, budget, and how life insurance fits into your overall financial plan. Some households may opt for a combination of coverage types to address various needs. Ultimately, having a life insurance policy does not guarantee the right amount of protection. Your coverage is intended to support financial needs that can change substantially over time due to fluctuations in income, family structure, assets, and obligations. Thus, purchasing a policy years ago should not be considered a one-time decision. Periodically comparing your coverage with your current financial situation will ensure that you have the appropriate protection in place.",
  "summary": "Your life insurance needs can change over time. Here's how to tell whether your current coverage still measures up.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}