Life Insurance Facts and Statistics #6: Over 50% of Americans Think Life Insurance Costs Too Much

Financial Horizons: Insights for Building Wealth and Securing Your LegacyLife

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

It’s one of the most persistent myths in financial planning — the belief that life insurance is too expensive. According to industry data, more than half of Americans overestimate the cost of life insurance, often by two or three times its actual price. This misconception prevents millions from securing affordable protection for their families and leveraging one of the most powerful wealth-building tools available.

The truth? Life insurance is often far more affordable and flexible than people realize. In fact, most families could have solid coverage for the cost of a few cups of coffee per week.

1. The Psychology of Overestimation
Money is emotional. When people hear the term “life insurance,” they imagine large, unmanageable premiums that strain their monthly budget. But in reality, the average cost for a healthy adult in their 30s is often less than $30 a month for a term life policy — and many cash value policies can be structured to fit any budget.

At The C & R Group, LLC, we see this all the time: families assume protection is out of reach until we design a plan that fits their exact goals, income level, and tax strategy. What they discover is life-changing — peace of mind doesn’t have to break the bank.

2. The Real Cost of Doing Nothing
While people overestimate the cost of life insurance, they often underestimate the cost of being uninsured. Consider what happens if the unexpected occurs:

• Lost income for dependents.
• Unpaid mortgages and debts.
• Children’s education or business goals left unfunded.
• The absence of a tax-free asset that could sustain the family legacy.

The harsh truth is this: not owning life insurance is more expensive than owning it. It’s a cost measured not in dollars — but in opportunity, security, and legacy.

3. How to Turn Life Insurance Into an Investment Strategy
Beyond protection, modern life insurance can serve as a wealth-building asset. Indexed Universal Life (IUL) policies, for example, allow your cash value to grow based on stock market performance — without the risk of market loss.

They also offer benefits like:

• Tax-free retirement income withdrawals.
• Access to living benefits in case of chronic or terminal illness.
• Legacy creation through permanent death benefits.

At The C & R Group, LLC, we help clients structure policies that act like a personal financial fortress — protecting, growing, and distributing wealth with strategic tax efficiency.

4. The Bottom Line — It’s Time to Rethink What You Think You Know
If you’ve avoided life insurance because you think it’s too expensive, it’s time to take another look. With today’s flexible options, even modest monthly investments can secure six or seven figures of protection for your loved ones — and create a financial asset that lasts a lifetime.

You don’t need to be wealthy to own life insurance. But the smartest wealth builders never go without it.

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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.

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