Misconceptions often lead consumers to make bad decisions about everything from investments to major purchases. As a leading authority in the industry we work hard to educate consumers about the importance of life insurance in an effort to help our readers make wise decisions. This is why we’re devoting today’s post to dispelling common misconceptions about life insurance rates.
Life Insurance Rates
A recent survey by industry authorities LIFE Foundation and LIMRA found that the Average American grossly overestimates the cost of life insurance coverage. In fact, survey respondents overestimated life insurance rates an average of 3x the actual cost. That’s right; three times! The average annual cost of a 20-year, $250,000, level-term policy for a healthy 30 year old is only $150 though those surveyed estimated an average of $400 per year. Knowing that there are 20 year term life insurance rates available for as little as $150 a year; can you afford coverage?
Furthermore, the 2012 Insurance Barometer Study, found that 85% of consumers who feel they need more life insurance do not purchased added protection because they feel that the coverage is “too expensive.” What does this tell us? Many Americans are choosing to forego the coverage they need for fear of soaring life insurance rates.
The Underinsured Population
Another study, by our friends at LIMRA found that women, minorities and young adults are the most underinsured and the most unaware of the life insurance coverage options available to them. In fact, 33% of women, 42% of African Americans and 37% of Hispanics surveyed believe they need more life insurance. With so much misinformation about life insurance rates and so many working Americans feeling underinsured, those of us in the life insurance industry have our work cut out for us.
If you feel that you fall into this category, we encourage you to read these recent blog posts:
If you are one of the millions of American’s under the wrong impression about the cost of life insurance rates, why not request a quote today? Let us help you determine just how much life insurance you can get for as little as $150!
Interested in learning about life insurance rates and coverage? We encourage you follow our Life Insurance Blog. Here we will be addressing the topics and issues that affect you and your loved ones.