Young Adults Think Life Insurance Costs 10 Times More Than It Does

Ask a healthy 25-year-old what a $250,000, 20-year term life policy costs, and the guess is usually wildly high. According to the 2025 Insurance Barometer Study from LIMRA and Life Happens, adults aged 18–30 overestimate the median cost by 10 to 12 times.

That single misconception may be the biggest reason young families go unprotected. The study found a direct link between knowledge and ownership: among young adults who own life insurance, 47% say they are knowledgeable about it; among those with a coverage gap, 53% say they know little or nothing.

The real numbers: a healthy non-smoker in their 20s can often buy that $250,000 term policy for roughly $13–20 a month — less than most streaming bundles. Waiting doesn't help: premiums rise with age, and a new health diagnosis can change your rate class overnight.

If you are in your 20s or 30s with a partner, a child, or a co-signed loan, the cheapest life insurance you will ever see is the quote you get today. Source: LIMRA and Life Happens, 2025 Insurance Barometer Study.