Term life insurance is the most straightforward financial product. So why do so many families not have it?
Article Written By: Lauren Hoeffel
Term life insurance does one thing: it pays a lump sum to your family if you die during the coverage period. There is no cash value, no investment component, and no complexity—just straightforward protection at the exact moment your loved ones would need it most. Yet, millions of households remain unprotected by this type of coverage.
What exactly is term life insurance?
Term life insurance provides coverage for a specific period of time that you choose, including both the amount and duration. If you pass away during this term, your beneficiaries receive the death benefit; if not, coverage ends. The product is uncomplicated—no hidden fees or confusing conditions, and no explanations needed later if outcomes differ. Term life is akin to a smoke detector: it is simple, essential, and unfortunately often overlooked until it is urgently needed.
Who needs it?
Anyone whose death would create a financial hardship for someone else.
You likely need term life insurance if:
• You have children who depend on your income
• You share a mortgage or other major debt with a spouse or partner
• You financially support aging parents
• You own a business with partners or employees who rely on you
• Your paycheck helps cover everyday household expenses
A simple rule: if someone would struggle financially if you weren't here tomorrow, life insurance isn't optional—it's a responsibility.
The question isn't whether you need coverage. It's how much and for how long.
How is it different from whole life insurance?
Whole life is permanent; as long as premiums are paid, it remains in force and accumulates cash value over time. It is an excellent product for the appropriate client and circumstances, which we explore in other discussions. However, whole-life premiums can be five to fifteen times higher than comparable term policies.
For a young family managing a mortgage, dependents, and budgeting priorities, that added cost impacts essentials such as groceries, childcare, or emergency savings. More importantly, an unaffordable premium can cause the policy to lapse, providing no protection at all. Term life makes adequate coverage sustainable for families. This makes a much greater difference than many expect until it is too late.
What does the Family Security Plan’s term life product include?
Our term life insurance offers level periods during which both the premium and the death benefit are locked in for the policy’s duration. The benefit goes directly to your designated beneficiary—there are no delays due to probate or estate settlement, and no additional bureaucracy at a difficult time.
In addition, a Terminal Illness Rider allows access to a portion of the benefit in the event of a terminal diagnosis, providing meaningful support when it matters most. With this feature, coverage offers real financial relief during life, not only after death.
How much coverage does a family actually need?
A death benefit should help cover:
• The remaining mortgage balance
• Everyday living expenses
• Childcare costs
• Future college expenses
• Outstanding debts
• Final expenses
• Income replacement for the surviving spouse
That's why many financial professionals recommend starting with coverage equal to 10 times your annual income and adjusting based on your family's specific needs.
Not sure where you stand? Take 3 minutes to fill out our Insurance Coverage Quiz now!
What does it cost?
Many people overestimate the cost of life insurance by three to five times.
For many healthy adults, term life insurance can cost less per month than:
• A streaming subscription
• A few coffee shop visits
• One family takeout meal
The bigger question isn't, "Can I afford life insurance?"
It's, "Could my family afford life without my income?"
Why do so many families put this off?
Many people put off obtaining life insurance because it requires confronting the topic of death. This discomfort leads to postponement, much like delaying a will, scheduling a health checkup, or attending to overdue repairs at home.
However, life insurance becomes unavailable exactly when it is most urgently needed. A serious diagnosis can render coverage impossible or prohibitively expensive overnight. The families most affected are rarely those who make an informed choice—they are those with good intentions who never quite act.
Is term life insurance usually a better choice than whole life insurance for most families?
Term life insurance is not always the right choice, but for most working families in the early or middle stages of building a financial foundation, it is a highly appropriate option. The need for life insurance is greatest when the mortgage is substantial, children are young, and savings are still growing. Term life fits this window at a price that accommodates a balanced household budget.
Whole life is valuable for clients with permanent coverage needs, estate planning goals, or the ability to sustain higher long-term premiums. However, it is not the best starting point for a family currently without any coverage. It is important to secure protection first and refine options later.
What should advisers and individuals actually do?
Advisers: lead with this for any client with dependents and no coverage. It is the foundation on which everything else is built. Disability insurance, critical illness, hospital indemnity, and accident coverage all assume the primary earner is alive. Term life is what protects the family if they’re not. Have that conversation before any other. Individuals: If people depend on your income and you don’t have life insurance, make this your first action—today.
Protect what matters most now, not later. There is no substitute for decisive action when it comes to your family’s future. Take charge and secure the protection your loved ones deserve.
If people depend on your income and you don't have life insurance, you're taking a risk every day whether you realize it or not. Term life insurance isn't exciting. It won't make headlines. It won't make you wealthy. What it can do is ensure that the people you love have time, options, and financial stability when they need it most. And that's exactly what insurance is supposed to do.
