One of the first things you learn to do when you are older is to worry. Whether you are a single adult or a happy parent of three, there are several things that will perpetually come across your mind. What will happen to your kids if they are not safe? What would you do if a financial crisis were to happen? In most of these situations, there are no tangible solutions. The only things you can purchase to clear your mind from such thoughts are policies that will protect you or your family in case an emergency does arise. No material luxuries can lessen your worries like life insurance can.
Recently, Life Happens and LIRMA partnered to conduct a study that showed, “Cost is the reason most Americans give for not owning life insurance.” It’s unfortunately a big misconception, because that statistic was provided by young adults who overestimated the cost of life-insurance. Millennials (15-35 year olds) assumed policies were more expensive by 213% while GenX (35-55 year old) exceeded the price by 119%.
The study required both generations to guess the cost of a 20-year, $250,000 level term-life insurance for a healthy 30 year-old. Eight in ten participants estimated the annual cost for life insurance to be approximately $400, with some estimating as much as $1,000. On average, the annual cost is about $160 a year, or $13 a month.
Life Happens and LIRMA’s study shows that a lot of people have the wrong perception of the actual cost of life-insurance. To help put things into perspective, here are several items you most likely purchase that are more costly than paying several months of a life-insurance premium.
Your TV – The new 55” LED TV looks amazing in your living room, but the $800 you spent could have covered approximately five years of an average life-insurance policy. In the long-term, a life-insurance policy can benefit you much more than reality entertainment.
Your iPad – On average, an iPad costs around $550, the equivalent of 3.5 years of life-insurance coverage.
Clothes – It’s hard to avoid designer clothing fresh off the runway. However, instead of picking up that irresistible $200 cocktail dress or suit, you could cover yourself with a policy for almost two years.
Remember, the average premium for a life insurance plan is about $13, so do the math before making any impulse purchases and see if that is really where you should be putting your money. Life-insurance is more affordable than most people think and an investment that should be considered more often at any age.
