Is Life Insurance Expensive?
More than 80 percent of Americans polled tend to overestimate the cost of life insurance. 1 In fact, 86 percent of consumers who know they need life insurance haven’t purchased a policy because they think it’s too expensive. 2
To illustrate this point, the 2014 Insurance Barometer Study asked individuals what they felt the price of a $250,000 level-term life insurance policy would be for a 30-year-old person in good health. Surprisingly, the average estimate given by those surveyed was $1,000 — nearly 10 times the actual cost of $150 a year, with nearly one-in-five consumers in the same 25-year old age group estimating the same policy at better than $3,000. 1
According to the Life Insurance Marketing and Research Association, the findings from this study reveal an astounding lack of awareness about the true cost of life insurance. For this reason, it’s important to do your homework and get better informed about “ how much
life insurance do I need ,” what policy type will best fit your budget, and to compare rates with reputable life insurance companies.
Because life insurance premiums are based on a variety of factors (your age, overall health, whether you smoke, family history, etc.), we can’t predict what kind of premiums you may be looking at. However, what we can tell you is that the earlier you purchase a life insurance policy and the healthier you are, the lower your premiums are likely to be.
The bottom line is that while premiums for life insurance can vary greatly, you’ll never know what that cost may be if you keep putting it off. A qualified life insurance agent or company service representative can run quotes based on your individual needs, and recommend what type of policy is best for you. For more information on how to shop for life insurance, visit the Protective Life Insurance Learning Center.Source: www.protective.com