Priced Out

Young Americans dramatically overestimate the cost of life insurance, which may be preventing them from securing needed coverage, according to the "2025 Insurance Barometer Study" from LIMRA and Life Happens. Adults aged 18 to 30 believe a $250,000, 20-year term policy costs 10–12 times more than it actually does.

This knowledge gap contributes to a persistent coverage shortfall. Among Generation Zers and millennials who say they are not knowledgeable about life insurance, 53% report having a need gap—meaning they acknowledge needing life insurance or more of it but haven’t purchased coverage. Cost is the most cited reason, with 48% of millennials and 39% of Gen Z citing perceived expense as the primary barrier.

Even with the growing use of social media and artificial intelligence (AI) for financial education, with 3 in 5 of young adults saying they would use an AI tool to research a life insurance policy, uncertainty remains. Specifically, one-third of young adults say they don’t know how much insurance they need or what type to buy.

4 IN 5

ADULTS UNDER THE AGE OF 45 USE SOCIAL MEDIA TO LOOK UP

INFORMATION ON FINANCIAL SERVICE PRODUCTS.

SOURCE: LIMRA AND LIFE HAPPENS