The trouble with life insurance is that most people don’t have it. Why? Studies from LIMRA show that most people think it will be too expensive. Life Happens partnered with LIMRA to produce a study to investigate this. The study, which was called The Barometer Study, looked at consumer trends and perceptions regarding life insurance, retirement and their financial well-being.
“We’ve consistently seen over the last 5 years that consumers think life insurance is more expensive than it really is,” says Marvin Feldman, president and CEO of Life Happens. “We need to help educate the public about how affordable life insurance can be.”
Here are more findings from the study:
When people were asked how much the yearly cost would be for a 20-year $250,000 level term life insurance policy for a healthy 30-year-old:
- 80% of people overestimated the cost
- They guessed on average $400 per year
- 1 in 4 thought it would be $1000 a year or more.
- But…the true cost for that $250,000 ploicy is about $160 per year or $13 a month
To put this into perspective,
Here’s what the cost looks like compared to what many people spend per month on:
Life insurance $13
Cell phone $61
Cable TV $64
Coffee on the way to work $80
Take out lunch $140
Car insurance $150
Life insurance protects those who matter to you most. Trimming a few dollars a month to afford a plan for yourself seems like a no-brainer. And don’t wait until you are too unhealthy to be insurable, do it while you are young and healthy!