Consumers Overestimate the Cost of Life Insurance

Jul 5, 2015

  1. xrac
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    xrac Guru

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  2. djs
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    djs Super Moderator Moderator

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    Interesting twist on a view point.

    2 problems with this:

    1. How many agents would pitch just a 20 year term policy? Very few. In other words, this is based on either 'bait and switch' or trying to 'market' the loss leader.

    2. How many 30 year olds qualify for preferred rates? For a good portion, the estimated $400 annual costs is probably more accurate than the articles $150 annual rate.

    And....

    If $400 annual cost is stopping someone from getting the coverage they need, does making it $150 really help? In some cases, yes, the majority, probably not.

    The bottom line is that 30 year olds don't see the need just yet, compared to the need for the latest iPhone.

    Dan
     
  3. pfg1
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    Spot on right there. Heck alot of 40yr olds feel the same way.
     
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