How long could your family survive without your income?

How long could your family survive without your income?

No one wants to think about what would happen to their families if they died unexpectedly. But that reluctance to plan for the future could leave loved ones at serious financial risk. And according to new data from the Life Insurance Marketing and Research Association (LIMRA), many families would feel the impact within a month after the death of the primary breadwinner.

In this article, Everly Life looks at what the LIMRA data shows and suggests steps you can take to help secure your family’s financial future.

Data Shows Families Feel the Financial Impact Almost Immediately

With gas prices on the rise and economic uncertainty more prevalent than ever, it’s no surprise families are feeling the financial squeeze, with six in 10 Americans reporting feeling only somewhat financially secure. How might that picture change with the sudden death of a primary breadwinner?

According to LIMRA’s 2025 Insurance Barometer, here’s the breakdown of how long it would take a family to feel financially impacted if the primary wage earner passed away:

• One month or less — 27%
• Six months — 20%
• One year — 12%
• Two or more years — 26%
• Don’t know — 15%

The data shows that nearly half of all respondents would feel a financial impact within six months or less (47%). Given the top answer was within one month or less, it suggests that many families rely solely on the breadwinner’s income to stay financially afloat. That creates sudden and steep risk if the primary wage earner passes away.

Particularly telling is the 15% of respondents who don’t know how they’d be impacted, which suggests that their families may be ignoring these financial conversations until it’s too late.

The picture shifts meaningfully for families with a life insurance policy, with 52% of respondents indicating they’d rely on a life insurance policy if the primary breadwinner died unexpectedly, second only to a savings account.

Why Are So Many Families at Financial Risk?

Many assume employer coverage is enough.

It’s estimated that 55% of American workers have a life insurance policy through their employer, with 57% of those workers believing that it provides them with sufficient coverage. While that’s an important step in keeping families financially protected, employer-only coverage may not provide enough protection to keep loved ones financially afloat, given the median basic coverage is either a flat sum or one to two times the individual’s salary.

Pricing misconceptions prevent families from buying.

Americans have a persistent belief that life insurance is more expensive than it really is; in some cases, overestimating costs by six to10 times. This misconception means many families struggling with competing financial priorities are deciding to forgo life insurance coverage before comparing quotes.

Coverage may not keep pace with life changes.

As families grow and circumstances change, coverage needs to evolve as well. That means families who purchased a policy before having another kid or buying a new home may find themselves underinsured.

The stay-at-home parent gap leads to underestimating insurance needs.

It’s estimated that stay-at-home parents contribute about $4,500 per month (about $54,000 per year) in unpaid labor. While we’ve largely explored the impact of losing the primary breadwinner, it’s important to note that the loss of a stay-at-home parent can have major financial consequences for a family, potentially leaving the breadwinner to cover new expenses. And with childcare alone costing more than public college tuition in most states, these sudden financial obligations could present a serious financial challenge for a breadwinner.

The good news is that addressing the factors that create financial risks is more straightforward than most families might expect.

How to Get the Right Level of Life Insurance Coverage

A quick way to estimate how much coverage your family might need if your primary breadwinner passes away is to get coverage that’s 10 times that person’s salary. For a more comprehensive look at how much your family really needs, try the DIME method: debt, income replacement, mortgage, and education costs. This method involves adding up how much it would take to cover these costs if the primary breadwinner passes away. The DIME method can give families a more personalized look at what it would take to feel financially secure.

Taking Care of Your Family’s Financial Future

The data highlights just how many American families are one unexpected loss away from serious financial hardship. Take the time to understand your family’s current financial picture, what your future costs could look like without your income, and what you can do to help bridge that protection gap.

This story was produced by Everly Life and reviewed and distributed by Stacker.