Many young adults believe life insurance is something they’ll need “one day.” Between student loans, rising rent, and the costs of everyday life, it often feels out of reach. But here’s the truth: most young people can afford life insurance—it’s just misunderstood.
According to recent LIMRA data, adults age 30 and under overestimate the cost of life insurance by 10 to 12 times. Many assume coverage costs hundreds of dollars a month, when in reality, a healthy 25-year-old can often get protection for as little as $9–$12 per week. That’s less than many spend on coffee, streaming subscriptions, or take-out meals.
So why do so many underestimate its value? The issue isn’t financial—it’s psychological.
The Perception Gap
Behavioral economists call it anchoring: we tend to link long-term commitments with high costs. Mortgages. Car loans. Medical bills. So, when we think about something as lasting as life insurance, our minds jump to “expensive.”
But the comparison doesn’t hold up. Here’s what many Americans spend weekly:
- $21 on coffee
- $35 on fast food
- $46 on streaming subscriptions
For less than any of those, you could begin securing your family’s financial future.
The Cost of Waiting
Delaying life insurance doesn’t just mean paying more later—it can mean missing out on valuable opportunities. Premiums are lowest when you’re young and healthy, and they rise steadily with age and health risks.
A 25-year-old who commits $20 a month today could secure decades of coverage at a fixed rate. Waiting until 35 could double that cost—and in some cases, health changes could make coverage more difficult to obtain.
It’s one of the few areas in personal finance where time truly is money.
Life Insurance: A Cornerstone of Long-Term Planning
Younger adults today face unique financial pressures. Many are part of the “Sandwich Generation”—caring for both children and aging parents while trying to save for retirement. In a recent Allianz Life study, 70% of these caregivers said their retirement plans have been affected, and nearly 60% have reduced or stopped saving altogether.
Life insurance can serve as a stabilizing force in this balancing act—protecting loved ones now while building financial flexibility for the future. Permanent life insurance, for example, builds cash value that grows tax-deferred and can later be used to:
- Supplement retirement income
- Fund education expenses
- Cover unexpected caregiving costs or emergencies
A Common-Sense Approach to Financial Protection
At Catholic Life Insurance, we empower our member-owners to live well—balancing faith, family, and financial well-being. Our products are designed for real life: affordable, flexible, and built to help you prepare for the future while living fully today.
The best time to start is now—when your coverage is most affordable and your potential is unlimited.
Visit www.cliu.com to explore affordable life insurance and retirement solutions that fit your stage of life, your values, and your goals.
