Factors Affecting Life Insurance Rates
May 3, 2021 by Ashley Kilroy, Jason Metz
If the main reason you don’t have a life insurance policy is that you think it’s too expensive, you are in good company. Almost two-thirds of people who do not have a life insurance policy cited this reason, according to the 2020 Insurance Barometer from LIMRA, an industry-funded research company. Sixty-seven percent of respondents said they don’t have life insurance because they have other financial priorities.
But life insurance may be more affordable than you think. LIMRA found that survey respondents overestimate the cost of a policy by more than three times the cost. When asked to estimate the cost of a $250,000 term life policy for a healthy 30-year old, more than half the respondents said $500 or more per year. The actual cost is closer to $160 per year.