Watch: the life insurance cost myth
About 34 seconds · Your insurance contact is Nathan Kornegay.
Read the video transcript
Think life insurance is too expensive? Before you rule it out, get the facts. The cost depends on your age, health, the coverage you choose, and the policy. Term life may cost less initially than permanent coverage, but they serve different needs. Start with what you want to protect and a payment you can maintain. If now isn’t the right time, that’s okay. Learn your options, ask questions, and request more information from the agent who shared this with you. No pressure. Just a helpful conversation.
When you’re watching your budget, another monthly payment can feel like the last thing you need. So it’s understandable to think, “Life insurance probably costs more than I can afford.”
But an assumption about price and a price based on your situation can be very different things. Before you decide life insurance is out of reach, it may help to understand what goes into the cost—and what choices you have.
“Too expensive” can begin with the wrong comparison.
Life insurance comes in different forms. A policy designed to help protect a family during the mortgage years serves a different purpose from coverage intended to last a lifetime.
Term life covers a specified period and generally starts at a lower cost than permanent life insurance for a comparable death benefit. Whole life is designed for lifelong coverage when required premiums are paid and can build cash value. Those differences matter when comparing prices. [NAIC]
Hearing the price of one policy does not tell you what every other option will cost—or whether that policy matches your needs.
Start with the people and expenses you want to help protect.
Instead of beginning with the biggest number on a brochure, begin with a practical question: What would I want this money to help my family with?
- Keeping up with mortgage payments or rent.
- Helping replace income the household depends on.
- Covering funeral costs and other final bills.
- Giving loved ones time to adjust financially.
Your answer helps shape the conversation about the amount of coverage and how long you may need it. Then you can look at what fits a payment you could realistically maintain.
“I’d like to understand my options, but I need to keep the payment within my budget.”That is a perfectly reasonable way to start.
A useful comparison looks beyond the monthly payment.
A lower premium is worth understanding, not just celebrating. Ask what you receive for that payment and what limitations come with it.
Four questions to bring to the conversation
- What does the policy cover? Ask about exclusions and any period when benefits are limited.
- How long does the coverage last? Understand the term, renewal options, and any age limits.
- Can the payment change? Find out what is guaranteed and for how long.
- What determines my eligibility and price? Your age, health, tobacco use, coverage amount, policy type, and the insurer’s rules can affect the options available.
Accidental death and critical illness coverage have different purposes and limits. An accidental death policy does not provide the same protection for illness-related death as life insurance. Critical illness coverage applies to specified conditions under its policy terms; it is not comprehensive health insurance. A smaller price tag alone does not make these interchangeable with life insurance.
And if now really isn’t the right time?
That deserves respect, too. Sometimes the budget truly does not have room for another payment. Learning about coverage does not mean you have to buy it today, and asking a question does not commit you to an application.
You can keep your agent’s information, learn the basics, and revisit the conversation when it makes sense for you.
Find out before you rule it out.
If cost has kept you from exploring life insurance, I’m happy to help you understand the options that may be available. We can start with your questions and your budget.
Request more informationNo purchase required. Ask a question. Take your time.
General educational information, not a quote, an offer of insurance, or a guarantee of eligibility or affordability. Products, premiums, underwriting requirements, benefits, exclusions, and availability vary by insurer and state. Coverage is subject to the terms of the policy.