Think Life Insurance Costs Too Much? The 2026 Facts May Surprise You
So, what is LIMRA? LIMRA is a research and professional organization that has been studying the insurance and financial services industry for more than 100 years. Its research examines consumer attitudes, behaviors, and trends related to insurance and financial protection. The annual Insurance Barometer Study is conducted by LIMRA in partnership with Life Happens and provides insight into how Americans view, understand, and purchase life insurance.
If you have ever thought, “I probably need life insurance, but it is probably too expensive,” you are not alone.
In fact, new research from LIMRA and Life Happens suggests that misunderstanding life insurance may be one of the biggest reasons Americans continue to go without enough coverage.
The 2026 Insurance Barometer Study found that life insurance remains one of the least-understood major financial products. Consumers report understanding nearly every other major financial product better than they understand life insurance. Cost misconceptions continue to be a significant barrier to purchasing coverage.
That matters because life insurance is not simply about preparing for death. At its core, it is about creating financial protection for the people, responsibilities and plans that continue after you are gone.
The Cost May Not Be What You Think
One of the biggest problems is that consumers often assume life insurance costs far more than it actually does.
LIMRA's research has repeatedly demonstrated this disconnect. In the 2025 Insurance Barometer Study, healthy adults ages 18 to 30 estimated the cost of a $250,000, 20-year level-term life insurance policy at roughly 10 to 12 times the actual median cost.
That is a significant difference.
It also illustrates why guessing about life insurance can be expensive in another way: you may decide not to apply for coverage based on a price that exists only in your head.
The actual cost of a policy depends on factors such as age, health, coverage amount, policy type and underwriting. The only way to know what you may qualify for is to explore your options and receive an actual quote.
More Than 100 Million Americans Recognize a Coverage Gap
The issue goes beyond people who have no life insurance at all.
LIMRA reported in its 2026 outlook that just half of U.S. adults own life insurance, while more than 100 million Americans acknowledge that they have a coverage gap.
A coverage gap can mean different things.
You might have life insurance through your employer but not enough to replace your income for your family. You might have purchased a policy years ago but your financial responsibilities have changed. You may have a mortgage, children, business obligations, debts or other people depending on your income.
Or you may simply have never reviewed your coverage.
The question is not necessarily, “Do I have life insurance?”
A better question is:
“Would the coverage I have today be enough for the people who depend on me?”
Life Insurance Is Changing, Too
Another interesting finding from the 2026 research is that consumers are looking for more from life insurance.
LIMRA reports that about half of consumers express interest in policies that could provide features connected to retirement income, long-term care, critical illness expenses or emergency needs. About half also say they would ideally like policies that could be customized as their lives change.
Some of these features already exist in certain life insurance products and riders.
That means today's life insurance conversation does not have to begin and end with the death benefit. Depending on the product and eligibility, certain policies may provide additional financial features while the insured is living.
However, these features vary by carrier and policy. They should be evaluated carefully rather than assumed to be included with every life insurance policy.
Don't Let an Assumption Make the Decision for You
This is perhaps the most important lesson from the research.
You do not have to become an insurance expert before you explore life insurance.
You do not have to know which carrier is right for you.
And you do not have to assume that because one policy is expensive, every policy will be.
Start by finding out what options may actually be available to you.
Your Next Step Can Be Simple
If you have been putting off life insurance because you think it will cost too much, consider getting an actual quote before making that decision.
You can use my fast online life insurance quoting site to begin exploring available options:
Start your life insurance application and quote:
Get Your Life Insurance Quote
The online process allows you to enter your information and begin the process of identifying potential life insurance options. From there, your information can help determine what coverage and carrier options may be available based on your circumstances.
There is no advantage to guessing.
If you need life insurance, or you suspect you may not have enough, find out what it could actually cost before deciding you cannot afford it.
The 2026 Insurance Barometer Study reinforces an important message: sometimes the biggest barrier to financial protection is not the price of coverage. It is what we believe the price will be.
Learn the facts. Explore your options. Then make an informed decision about protecting what matters.