How Much Does Life Insurance Really Cost?

How Much Does Life Insurance Really Cost?

From SML Planning Minute by Security Mutual Life Advanced Markets Team

April 28, 2026 · 8 min · Episode 381

About this episode

This episode discusses the misconceptions young adults have about the cost of life insurance and presents findings from a recent survey.

How Much Does Life Insurance Really Cost? Episode 381 – A recent survey by LIMRA presented a jarring statistic: young adults believe that the cost of a life insurance policy is 10 to 12 times higher than it really is. The truth is that, for young people, the security and peace of mind a life insurance policy may provide may be a lot more affordable than you think. More SML Planning Minute Podcast Episodes Transcript of Podcast Episode 381 Hello, this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute . In today’s episode: how much does life insurance really cost? According to a survey by LIMRA , a life insurance trade organization, and Life Happens , an industry nonprofit, younger Americans tend to overestimate the cost of life insurance to a startling extent. Surveyors asked people aged 18 to 30 how much they thought a 20-year term life insurance policy would cost. The estimates were off-base. They averaged between 10 and 12 times the actual cost. [1] This is a common misconception. A surprising number of people, particularly younger Americans, believe that life insurance is more expensive than it actually is. The perceived cost was cited as a…

People in this episode

Host: Bill Rainaldi

Topics covered

  • life insurance
  • cost of insurance
  • young adults
  • misconceptions
  • financial planning

Keywords

  • life insurance
  • cost
  • young adults
  • LIMRA
  • financial security

Mentioned in this episode

Organizations: LIMRA, Life Happens

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