Life Insurance Facts and Statistics #3: 44% of Millennials Overestimate the Cost of Term Life Insurance by 5X

Financial Horizons: Insights for Building Wealth and Securing Your Legacy

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

When it comes to financial planning, perception can be the greatest obstacle to progress — and this statistic proves it. Nearly half of Millennials (44%) overestimate the cost of term life insurance by five times its actual price.

That means a generation known for being financially cautious, tech-savvy, and forward-thinking is often missing out on one of the simplest and most cost-effective tools for long-term financial protection.

1. The Cost Myth — Busted
Many Millennials assume life insurance costs hundreds of dollars a month. In reality, a healthy 30-year-old can often secure $250,000 to $500,000 in coverage for $20–$40 per month — less than the cost of dinner for two.

Term life insurance is designed to be affordable protection, especially for younger, healthier adults. Yet, because of misinformation, many delay purchasing it until later in life — when it’s more expensive.

The takeaway: The longer you wait, the higher the premium. The earlier you act, the more affordable your protection becomes.

2. Why Millennials Are Missing the Mark
Several factors drive this misconception:

• Financial distractions: Between student loans, rent, and rising living costs, insurance often falls low on the priority list.
• Lack of financial education: Many were never taught how life insurance truly works — or how it can serve as an asset, not just an expense.
• Digital misinformation: Online calculators and “one-size-fits-all” estimates often inflate prices, discouraging younger buyers.

The truth is simple — term insurance isn’t just affordable; it’s essential. It protects your family, your debts, and your goals at a time when your income potential is still growing.

3. The Power of Starting Early
Here’s where the magic happens: when you buy life insurance early, you don’t just lock in lower premiums — you also position yourself for advanced wealth strategies later, such as converting to an Indexed Universal Life (IUL) policy.

An IUL allows you to:

• Build tax-free cash value
• Protect against market losses
• Create a retirement income stream later in life.

This is how savvy Millennials turn protection into a tax-advantaged wealth-building vehicle.

4. The Bottom Line
Millennials are one of the most financially literate generations in history — but this statistic reveals a dangerous blind spot.

If you’re under 40, life insurance is not just affordable — it’s strategic. It safeguards your present while empowering your future.

At The C & R Group, LLC, we help clients cut through the noise, find policies that fit their life stage, and integrate insurance into a long-term financial strategy that grows wealth — not drains it.

Don’t overestimate the cost. Overestimate the value instead.📖 Read more at: www.thecrgroupllc.com/blog
📅 Schedule 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.

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