Here is a number that should stop you in your tracks: roughly 100 million American adults are uninsured or underinsured, according to the 2025 LIMRA and Life Happens Insurance Barometer Study. The most common reason people give for not buying? They think it costs too much. The data says they are wrong, and badly. Healthy adults under 30 overestimate the cost of a term policy by 10 to 12 times.
So let's set the record straight.
WHAT TERM LIFE IS
You pick a coverage amount, choose how long it lasts (usually 10, 20, or 30 years), and pay a fixed monthly premium. If you pass away during the term, your family receives the full death benefit, tax-free. No cash value, no complexity. Just pure protection for the years your family needs it most, which is why it is the most affordable type of coverage available.
WHAT IT ACTUALLY COSTS
For a healthy 35-year-old, a 20-year, $500,000 policy typically runs $25 to $40 per month. Often less than a streaming bundle. But age is the biggest lever, and waiting is expensive:
- Age 30: around $25 per month
- Age 40: around $35 per month
- Age 50: around $75 per month
- Age 60: $200 or more per month
With level term, your rate is locked in for the entire term. Lock it in young and healthy, and you keep that price for decades.
HOW MUCH YOU NEED
A common starting point is 10 to 12 times your annual income, adjusted for your mortgage, debts, future costs like college, and existing savings. One caution: employer coverage usually equals just one or two times your salary and vanishes when you leave the job. For families with dependents, it is a supplement, not a solution.
THE BOTTOM LINE
Term life is affordable, simple, and one of the strongest protections you can put in place. The biggest mistake is assuming it costs more than it does and waiting, because it only gets pricier with age.
At Grandbay Financial Services, we help families run the real numbers and find the right policy at the right price. No jargon, no pressure. Reach out today.
Sources: 2025 LIMRA & Life Happens Insurance Barometer Study; Guardian and Insure.com 2025-2026 rate data.