Life insurance is a term that most everyone is familiar with. Some hear about it from their elders as they grow up, some may first encounter the term in a staff meeting about benefits. While this term is familiar to most, not everyone who thinks they understand the ins and outs of life insurance actually do. We’re not saying every individual should be an expert on the subject, but in order to make the best decision about life insurance for oneself, it’s probably a good idea to know at least the basics.
Most Americans who do not elect to enroll in life insurance respond with the common refrain, “It’s too expensive!” Cost is a common (and valid) concern, however, 80% of people are overestimating how much it costs*. The estimates ranged from $200-$400 over the actual cost. And we aren’t dealing with numbers in the thousands, where a few hundred dollars over or under the actual cost would make a much smaller difference. The actual cost of the proposed policy was $160.00 a year.
If you compare that to what people are willing to pay for cell phones, cable, or eating out, it’s one of the more affordable costs an individual or family can take on. Of course, every added cost must be considered in one’s budget and considering life insurance may involve some changes in monthly or yearly budgets. However, more often than not, it’s not nearly as much of an adjustment as we see people projecting it to be. And this can make all the difference when someone is considering their financial future and how life insurance can play a part in their planning.
The 2018 Barometer Study by Life Happens and LIMRA also reported that 61% of people don’t buy life insurance (or more of it) because they have other financial priorities. When comparing the potential low cost of a policy, it’s time to think about whether or not these other financial priorities should in fact have priority. With this study also showing that consumers feel better about their economic situation and have a more positive financial outlook than in 2017, so with a bit more education about more budget-friendly policy options a lot more people who probably want coverage may feel more prepared to make the decision.
For more information on life insurance options and education of cost, contact Simplicity Life today! 800.921.3100
*2018 Insurance Barometer Study, Life Happens
The True Cost of Life Insurance, Life Happens