10 Everyday Things that Cost More Per Month than Life Insurance
Term life insurance is the most affordable type when it’s initially purchased, and it provides protection for a specific period of time. However, many people today still are without this type of coverage (or any type of life insurance coverage), mainly due to a lack of research or lack of understanding. Many assume that the cost of life insurance is much too high. Everyone worries about the health, safety, and financial security of their families, so why are so many people set on believing that coverage is so expensive?
How Much Does You Think Life Insurance Costs?
According to a study by Life Happens and LIMRA, an incredible 65% of households in the U.S. are not protected by life insurance because of the mistaken belief that life insurance costs are exceedingly high. The experiment asked people in the U.S. to estimate the cost of a term life insurance policy at 20 years for $250K worth of coverage for a healthy 30-year-old male. 80% of the people interviewed determined the cost was higher than it actually was, and assumed it was $400 per year on average. The actual cost, however, is about $160/year, not even half of what was assumed. In this same study, 25% thought coverage in this case would cost more than $1,000 per year.
Keeping Perspective on the True Cost of Life Insurance
There are so many everyday items that actually cost more per year than the $400/year average for the example shown above. The average monthly life insurance costs in the example above are only $13 per month! Following are some very common items that households spend money on that are more expensive (and more trivial) than the average cost of life insurance:
2. The National Resource Defense council states that Americans spend over $500/year, or $44/month, on unwanted meals and snacks.
4. An iPad costs on average $550, which covers more than three years of life insurance premium payments.
6. One trip to the movies costs at least $25 for a pair of tickets and snacks – two months of life insurance costs.
7. Cable TV service – Expanded Basic cable service costs about $65 per month!
9. For a family who orders pizza delivery twice per month, the average cost is $80, while the average cost for term life insurance is a fraction of that, at $13/month.
10. Unused gym memberships average about $30 per month, which could fund two months of a term life insurance policy.
When all is said and done, and the facts are researched and reviewed, it’s easier to see that life insurance costs are not nearly as high as most people think they are. What’s more disturbing is that most people still underestimate the importance of maintaining life insurance coverage. With 65% of households either under-insured or not insured at all, they run a huge risk of financial ruin and devastation upon the death of a loved one without life insurance coverage. Can your family really afford not to be covered?