Why Is Life Insurance So Expensive? 
Let me ask you this : expensive compared to what ? A Maserati is expensive compared to a Honda . A 50 room mansion is expensive compared to a studio apartment . The cost of hiring a chief executive officer for your company is expensive compared to the cost of hiring a file clerk . I think you have to look at what youre getting for your dollar . And what your other options might be . Lets suppose you go through prequalification . Then underwriting . Then you get approved . Then you get your policy and pay for it . You submit one monthly premium payment . And then tragically , you die . Your beneficiary will then get the full benefit . Within a week or so . You may have paid only a few hundred dollars , but the benefit could be in the millions . You may paid only a few thousand dollars , but the benefit could be in the tens of millions . That is a pretty good deal . Lets suppose your premium was $ 500 a month , and your benefit was $ 5 million . That could happen , depending on age and other underwriting factors . If you decided to not purchase life insurance , how much money would you have to invest , at what interest rate , over what period of time , to accumulate $ 5 million ? The fact of the matter is that for the vast majority of people , they would end up spending much more money on that investment than they would on life insurance . So the real question is why is self-insurance so expensive ? How can buying a life insurance policy be so much cheaper than trying to fund your financial security out of your own resources ? And dont forget the big game-changing factor : we never know when our time will come . Dont assume time will be on your side so you could eventually collect the money to self-insure . 