Consumers inaccurately believe that life insurance costs nearly three times the actual price, according to a report recently released by the non -profit LIFE Foundation and LIMRA.
The study, the 2012 Insurance Barometer Study, sheds light on one what could be one of the main factors contributing to the endemic coverage cap in the country. The survey, which asked 2,011 respondents between 18 and 75 to estimate the average annual cost for a 20-year, $250,000 term life policy for a healthy 30-year old consumer, found that respondents came up with $400. The actual cost is $150.
"If someone offered to sell you a gallon of milk for $10.00 you would likely choose to spend your grocery money on other necessities, knowing the actual cost is closer to $3.50," says Marvin Feldman, president and CEO of the LIFE foundation. "If people think something is too pricey, they often won't give it a second thought.
"The fact is, the cost for basic term life has fallen by about 50 % over the past ten years and it has never been more affordable," he adds.
