Cost is the reason most Americans give for not owning life insurance. Yet, 80 percent misjudge the price for term life insurance, with Millennials (people in their 40s and 50s) overestimating the cost by more than 210 percent, and Gen Xers (people in their 20s and 30s) overestimating the cost by 120 percent.
The 2015 Insurance Barometer Study by LIMRA found that 30 percent of Americans believe they need more life insurance, and 43 percent say they would feel a financial impact within six months if the primary wage-earner died. However, more than half say it’s unlikely they’ll purchase life insurance within the next year. Many of those surveyed prioritize other short-term expenditures (such as recreational activities, vacation savings and expenses such as Internet, cable and cell phones) ahead of purchasing life insurance.
In addition to believing life insurance is too expensive, LIMRA’s research has shown that people are intimidated by the process of buying life insurance; 40 percent say they don’t know how much they need or what to buy.
Is life insurance expensive?
Having a better understanding about the factors that influence insurance pricing, as well as the financial implications of suffering a loss without it, may help you feel more confident about making a purchase. Your Perspective advisor can work with you to evaluate your life insurance needs and can refer you to a reputable insurance professional.