Young People Overestimate Insurance Costs by 10x

The Perception Gap

According to LIMRA research, more than half of Millennials and Gen Z adults don't have life insurance. The #1 reason? They think they can't afford it.

Here's the reality check: when surveyed, young adults estimated that a $250,000 term life policy would cost about $1,000 per year. The actual cost for a healthy 25-year-old? Around $150-200 per year — that's roughly $13-17 per month.

Why the Disconnect?

Insurance companies have traditionally marketed to older demographics. Young people rarely encounter accurate pricing information until they actively shop for coverage.

Social media and pop culture often portray insurance as something "old people" deal with, creating a psychological barrier.

The Cost of Waiting

Every year you delay, premiums increase. A healthy 25-year-old pays roughly 50% less than a healthy 35-year-old for the same coverage. And if a health issue develops in those 10 years, coverage could become much more expensive — or harder to get at all.

Three States, Three Realities

Florida: With a large retiree population, insurance awareness is high — but younger residents often assume they're already covered through work.

Texas: The state's young, growing workforce means millions are underinsured without realizing it.

Alabama: Lower average incomes make the affordability misconception even more harmful — $15/month is manageable for most budgets.