Consider this from the latest LIMRA Insurance Barometer Study:
- 49% of non-owners of life insurance responding to this study said cost was the main reason they have not purchased life insurance.
- Moreover, when asked about the expected annual cost of a 20-year, $250,000 term life policy for a healthy 30-year-old they grossly overestimated the amount. Over 50% of the respondents said the policy would be $500 or more per year when the average cost of a policy is about $170 a year.
The LIMRA study concluded that “more than half the population thinks term life insurance is three times more expensive than it is.”
It is discouraging yet not totally surprising that younger respondents thought life insurance was on average even more expensive than three times what it really costs.
What are the factors that go into the price of life insurance?
Some people are surprised by this relatively short list.
- Age. The closer you are to your life expectancy the more the life insurance company risks having to pay out on your policy.
- Family history. Even if you are currently healthy your life insurance cost may be more simply because of a family history of health issues.
- Health history. Today this can likely be done instantly through our application process, but sometimes a medical exam is often necessary for people with a history of health problems.
- Smoking. Its link to cancer and cardiac issues is a major contributor to higher premiums.
- Gender. Because women live longer than men on average their cost of life insurance is typically less.
- Hobbies. If you enjoy high-risk hobbies like skydiving then your costs may be higher or make you ineligible.
- Occupation. There are many high-risk occupations such as loggers that will cause insurance rates to be higher or make you ineligible.
Don’t be afraid to ask about the cost of life insurance.
We find some people are reluctant to ask about the price. We understand. We provide an instant decision life insurance process, and it all starts with seeing the cost first…and you don’t need to talk to anyone. So we encourage you to get a quote now, it will only take a minute and we won’t load your inbox with emails.