Friday, April 29, 2016

Is Life Insurance Costly?

The true cost of life insurance. 3 out of 4 people believe they have a good understanding of life insurance. But do they really? When asked specific questions of life insurance they don't understand the different types of life insurance, how it works and the benefits that come along with it.  When it comes to cost, ideas are all over the board. People throw numbers around and they have no idea how they came up with that number. That "number just sounds right" to them.

Fortunately, business does not work that way. There would be no thought, no structure, no logistics, no analysis, no statistical means on conducting business. It would just be, "well that number sounds good so lets use that one." Doesn't make any sense does it? Businesses would collapse and households bankrupt without any true mathematical sequence used to generate a number. Math is incorporated into everyday life.

When asked how much a yearly premium would be for a 20 year level term policy with a face value of $250,000 the answers were all guessed. People could not define what level term meant therefore, were unable to provide an educated guess of premium. It was obvious people did not understand the question and numbers shouted out reflected their lack of understanding of life insurance.

When asked to explain the difference between whole life and ordinary life insurance policies, their brains froze. It was a trick question, there is no difference. Yet the general public still offer uneducated opinions.

Annual premiums on life insurance is much less expensive and more budget friendly than you think. The value added benefit of having life insurance far outweighs any monthly bill you have. Cost of life insurance is less than your cable bill, less than your phone bill, grocery bill. etc. One vacation could pay for many years of insurance premium.

So, to answer the question, "Is life insurance costly?"  The answer is yes. Life insurance is costly. It is costly for NOT OWNING A POLICY.

Before you say no or render an opinion on something you know nothing about, do due diligence and take the time to learn how insurance can prevent you and your family from falling into an financial trap of no money to pay bills.

 Learn more at

The more you know,

Trisha M. Pacenti RN,BSN