People who need life insurance overestimate its costs by nearly 300%
Many people significantly overestimate the cost of life insurance. Industry research consistently shows that Americans think life insurance costs 3 to 5 times more than it actually does — and this misperception causes millions of people to delay or forgo coverage entirely. The truth? Life insurance is far more affordable than you think.
The Cost Misconception
A common industry survey found that 44% of millennials estimated the cost of a $250,000 20-year term life insurance policy for a healthy 30-year-old at over $1,000 per year. The actual cost? Less than $160 per year — less than $15 per month.
Real Cost Example
The 1–2% Rule
One rule of thumb is to consider spending 1%–2% of your income on life insurance. For example, if you are making $60,000 per year, you could begin with a budget of $600–$1,200 annually for life insurance. If you’re a 40-year-old male, you could buy $900,000 of 10-year term and spend less than $600 per year.
The length of term insurance will change your premium as well. 10-year term is the most affordable coverage and 30-year term lasts the longest period of time for term insurance.
See for Yourself
Don’t let a price misconception stand between you and coverage. Run a free quote today and see just how affordable protection really is.
