Survey: Could You Accurately Guess The Cost of Life Insurance?
by Raychel Adiutori
Life insurance: It’s not exactly the kind of topic that comes up during family dinner. No one really wants to talk about the death of a loved one. But when it comes to securing your family’s financial security, it’s a conversation that needs to happen.
The fact is, there are many things about life insurance that people don’t know.
Find out what people had to say about the cost of life insurance and their reasons for (or against!) buying coverage in the new national survey from Erie Insurance.
LIFE INSURANCE: IT’S MORE AFFORDABLE THAN MOST PEOPLE THINK
When asked why they don’t have life insurance, almost four in 10 (38%) said it would be too expensive. However, survey results show most people probably overestimate the cost.
For example: With Erie Family Life, a 20-year, $250,000 term policy would cost roughly $200/year for a healthy 30-year-old man and $185 for a healthy 30-year-old woman.
When asked to estimate the cost, more than half of respondents (56%) said that policy would cost $300/year or more, including 10% thinking it would be $500/year. A full 11% more than doubled the actual cost, estimating the cost at more than $500/year.
The good news? Life insurance is probably more affordable than you think. Estimate your coverage with our life insurance calculator, or talk to a local ERIE agent who can provide you with a customized quote based on your specific circumstances (and budget).
TOP REASONS AND MOTIVATIONS FOR HAVING LIFE INSURANCE
So why do people buy life insurance, anyway? It’s not for you – it’s for those you leave behind.
The survey asked life insurance policyholders to list their top one or two reasons for buying this coverage.
The top answers were:
- To have money to leave as an inheritance for loved ones: 37%
- So my loved ones would have money to pay for my funeral expenses: 37%
- So my spouse and/or children would have enough money to maintain our current standard of living without my income: 32%
- So my loved ones could pay my debts: 17%
- So my spouse and/or children could keep our current home: 10%
See more surprising facts and statistics about life insurance in the infographic of survey results.
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