• The biggest misconception about life insurance is its cost: 80% of those surveyed overestimated the price for a given policy, according to the study.
“People think it’s more expensive than it is for protection that they truly need,” says Marvin Feldman, president and CEO of Life Happens.
That is particularly the case for millennials, who overestimated the cost by 213% on average, and Gen Xers, who overestimated by 119%. When asked the annual price for a 20-year, $250,000 term life insurance policy for a healthy 30-year-old, respondents gave a median estimate of $400. Millennials put it at $600. The actual price is about $160 annually.
