According to a recent study conducted by LIMRA, a worldwide association of insurance and financial service companies, and Life Happens, a non-profit organization based in Arlington, Va., 80 percent of consumers misjudge the cost for life insurance. The study also found that both Generation X and the Millennial generation overestimated the cost of life insurance by more than 110 percent.
What’s the story?
To protect your family through Gerber Life Insurance, for example, a $25,000 10-year term life insurance policy for a healthy 32-year-old costs $8.40 a month for a female and $9.00 a month for a male.
To put that into perspective, here are some typical items that can cost more than a life insurance policy:
Cable connection – The cost of cable, expensive enough as it is, doesn’t appear to be getting cheaper anytime soon. According to the International Business Times, the typical family pays about $64.41 per month.
Food waste – According to the Natural Resources Defense Council, an environmental action group, the average American throws out between $28 and $43 each month in food waste. Reducing monthly food waste in order to budget for a life insurance policy can be a win-win deal.
Gym / Fitness center – Getting into better shape is great, but doing so, too, can be expensive. Based on a report from U.S. News & World Report, an average membership in a gym can run between $35 and $55 each month.
Movie tickets – Most Americans view a trip to the movies as a typical social activity. In 2015, according to a report in Fortune, the average ticket price is $8.12, and that doesn’t include added costs such as 3D surcharges or food. If you’re paying for a spouse as well, you’ll dish out $16.24 for two tickets.
¹ Policy Form Series SLT-05