Life Insurance Facts and Statistics #2: 50% of People Overestimate the Cost of Term Life Insurance

Financial Horizons: Insights for Building Wealth and Securing Your Legacy

By Dr. Jose G. Cardenas, Chief Tax Strategist at The C & R Group, LLC

Half of Americans believe life insurance is too expensive — but here’s the truth: most people overestimate the cost of term life insurance by more than double. That misconception keeps millions of families from protecting their financial future simply because of a false assumption.

Let’s set the record straight.

1. The Real Cost Is Lower Than You Think

Many people assume life insurance will cost hundreds of dollars a month, but in reality, it’s often cheaper than your daily coffee habit.

For example, a healthy 35-year-old can get a $500,000 term life insurance policy for around $25–$35 a month. That’s less than what most Americans spend on streaming subscriptions.

The real problem isn’t affordability — it’s awareness. Too many people never even request a quote, assuming they can’t afford it before ever learning the facts.

2. Why People Overestimate the Cost

There are two main reasons this myth persists:

• Lack of understanding: People confuse permanent policies like Whole Life or Indexed Universal Life (IUL) with Term Life, which are structured differently.
• Misinformation: Many consumers rely on outdated assumptions or word-of-mouth instead of professional guidance.

The truth is, life insurance pricing is data-driven and individualized. Your age, health, and policy type all factor into the cost.

3. Why Waiting Costs More Than Buying Early

The biggest mistake you can make is waiting until you “need” life insurance. Every year you delay adds age and potential health changes to your record, both of which raise premiums significantly.

Getting coverage while you’re young and healthy locks in the lowest possible rates and ensures your loved ones are protected long before risk ever rises.

4. Life Insurance Is More Than a Death Benefit

While term insurance is an excellent entry point, advanced strategies like Indexed Universal Life (IUL) policies can go far beyond basic coverage.

IULs offer tax-free growth, living benefits, and retirement cash flow — making them not just protection, but a cornerstone of financial strategy. At The C & R Group, LLC, we help clients evaluate their current plans, find affordable solutions, and align insurance with broader wealth goals.

The bottom line: it’s not too expensive — it’s too important not to have.

👉 Read more at: www.thecrgroupllc.com/blog
📅 Book your consultation: Book a consultation with Dr. Cardenas

About the Author

Dr. Jose G. Cardenas is a retired U.S. Army Finance Officer and the Chief Tax Strategist at The C & R Group, LLC. With a Doctorate in Business Administration and over 20 years of experience in financial strategy, tax planning, and life insurance, Dr. Cardenas helps individuals and business owners protect their wealth and build a legacy. Learn more at www.thecrgroupllc.com.

📌 Disclosure

This article is for educational and informational purposes only and is not intended to serve as personalized legal or investment advice. Dr. Jose G. Cardenas, DBA, provides tax advisory services through The C & R Group, LLC. Insurance strategies, including Indexed Universal Life (IUL) and annuity products, may be offered through his role as a licensed financial professional affiliated with Experior Financial Group.

#FinancialHorizons #LifeInsuranceFacts #WealthProtection #InsuranceAwareness #AffordableCoverage #IUL #TaxFreeGrowth #FinancialEducation #LifeInsuranceMatters #TheCRGroupLLC #ExperiorFinancialGroup #FML100M