When we get to life insurance in a planning meeting, most families tell me they’re covered. They’re usually right that they own something. What’s harder to answer is exactly what they own, who it pays, and when it ends.
That isn’t a criticism. Life insurance is built to be bought and then set aside. You usually buy it during a busy season of life, like a wedding, a first home or a new baby. The premium goes on autopay, and the paperwork goes in a drawer. Meanwhile, the life it was designed around keeps changing.
What the research shows
LIMRA’s 2026 research found that at least 59% of U.S. adults have some form of life insurance, but only 51% say they do. Roughly one in six employees, and one in four insured employees, don’t seem to know about the coverage they have through work.¹
There are real gaps on both ends. Two in five adults with minor children report having no life insurance at all. And one in five insured households say they’d feel a financial strain within a month if a primary wage earner died.¹ For most of the families we work with, though, the issue isn’t a lack of coverage. It’s coverage that hasn’t been looked at in a long time.
Why an older policy deserves a second look
A policy is priced against your life as it was on the day you signed. Fifteen years later, a lot has usually moved:
- The original reasons may be gone. The mortgage is paid off, or the kids are on their own.
- Term policies have end dates. When the level period ends, renewal premiums are typically much higher.
- Conversion rights expire. Many term policies let you switch to permanent coverage without a new medical exam, but only until a certain age or policy year.
- Group coverage usually ends at retirement. For many families, that’s the largest policy in the household.
- Beneficiary designations get out of date. In most cases they control who receives the benefit, regardless of what your will says.
None of this shows up on a statement. You only find it by reading the contract.
An example
Consider a hypothetical couple, the Bennetts, both 58 and still working. (This is for illustration only.)
In 2008 they bought a $1 million, 20-year term policy, when they had a new mortgage and two young kids. The mortgage is paid off, the kids are grown, and the level period ends in about two years. He also has about $2 million of group coverage through work, which ends when he retires at 63. And there’s a small whole life policy his parents bought on him in 1979 that no one has looked at in years.
They’d describe themselves as well covered, and in a sense they are. But each policy ends in a different way, and the right move for each one depends on what they still need coverage to do. That might be replacing income for a few more years, providing liquidity for a business or estate, evening out an inheritance, or supporting a family member long term.
How we approach it
We treat this as a planning conversation, not a product conversation.
- Build a complete inventory. Every individual policy, every group benefit, and any older contracts. We read the actual provisions: face amount, beneficiaries, end dates, conversion deadlines, ownership, and whether the policy sits inside or outside the estate.
- Map it against real obligations. We look at what your family would actually face, not a rule of thumb based on income.
- Look at what the plan already covers. Our Fortress Gatewood structure keeps about two years of expected spending in liquid reserves and another five to eight years in high-quality fixed income. A surviving spouse with that structure in place has a very different picture than one without it. That affects how much insurance makes sense, and for how long.
This is what we mean by Firm-to-Family®: insurance, cash flow, taxes and estate documents reviewed together by the same team.
We also don’t start from the assumption that anything needs replacing. Existing coverage is often worth keeping. Sometimes the most valuable thing about an older policy is that it was underwritten when you were 38.
Common questions
How often should I review my life insurance?
Every three to five years is a good baseline. Review it right away after a major change, such as a marriage or divorce, a new child, buying or paying off a home, selling a business, retiring, or a change in health or income.
Does my beneficiary designation override my will?
In most cases, yes. That’s why outdated beneficiaries are one of the most common issues we find.
Do I still need coverage once the kids are grown and the house is paid off?
Sometimes not. Sometimes it still matters for reasons beyond replacing income, such as estate liquidity, a business buy-sell agreement, evening out an inheritance, or supporting a family member long term.
What happens to my employer coverage when I retire?
It generally ends. Some plans let you keep or convert it, but usually only for a short window and often at a higher cost. It’s worth checking well before your retirement date.
A simple place to start
Pull out your policies. Check who’s listed as beneficiary. Write down the key dates. If that raises questions, and it usually does, we’re happy to walk through it with you.
Sources:
- LIMRA, “Life Insurance: Coverage, Clarity and Confidence,” MarketFacts, 2026.
Important Disclosures:
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. Gatewood Wealth Solutions and LPL Financial do not provide legal or tax advice or services.
All investing involves risk including loss of principal. No strategy assures success or protects against loss.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.
