Life Insurance Coverage Often Delayed by Cost Concerns
A new study reveals that many Americans hesitate to purchase life insurance due to perceived high costs.
Updated on Sept. 29, 2026 in Financial Planning
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Do you currently find life insurance too expensive to include in your household budget?
A study conducted by Ethos of over 1,000 U.S. life insurance owners found that 38% of Americans believe life insurance is too expensive. This cost perception serves as the primary barrier preventing individuals from securing coverage, causing many to delay their purchase for years.
Why it matters
The findings highlight a significant gap in financial planning, as nearly half of respondents indicated they would act sooner if they understood that coverage could be affordable. This hesitation often results in extended periods where families remain without vital financial protection.
The study surveyed over 1,000 U.S. life insurance owners, finding that 42% of women and 30% of men cite cost as a primary barrier. Additionally, 31% of Americans reported waiting more than one year to purchase coverage after identifying a need.
The players
Ethos
Ethos is a technology-driven life insurance company that conducted this study to examine consumer behavior and affordability perceptions.
The details
According to the survey, 17% of respondents waited more than two years to secure life insurance after realizing they needed it. The data indicates that women are more sensitive to affordability information than men, with 45% of women reporting they would be motivated to purchase if they knew it was affordable, compared to 37% of men.
Timeline
September 2026: The study was published.
Market Dynamics
This report highlights a persistent challenge in the financial services sector where consumer knowledge gaps regarding product pricing stifle market growth. By quantifying the delay in purchasing, the industry faces an ongoing effort to align product transparency with actual consumer budget realities.
If you are delaying life insurance due to price, you may be surprised by the actual cost of various coverage levels. Comparing different policies can help you determine if your budget allows for protection sooner than you originally expected.
The takeaway
Cost-related hesitation can leave households vulnerable, making it essential for individuals to seek accurate pricing information early. Understanding the realities of insurance costs can help you move past perceived barriers and secure necessary financial protection for your family.
Further reading
Learn more about securing your financial future in the Financial Planning section.
More information
View the full life insurance study for detailed findings.
Source note: This article includes information reported by KTALnews.
Live Poll
Do you currently find life insurance too expensive to include in your household budget?
