There’s a Disparity of Life Insurance Coverage for Black People

With more and more black business owners, professionals, or even those who are just trying to be more financially informed, it is important that we plan for the one thing that will happen to everyone—planning for your death.

Understandably, that’s not something that a lot of people want to talk about. But, if you change your perspective, it’s the one thing in life that is guaranteed, so why not plan for it?

Life Insurance for You & Your Family

Funeral burial
Image via Rhodi Lopez on Unsplash

Buying life insurance can help you do just that. A lot of people think that life insurance is only for people with either a significant amount of money, people with children, or people with assets such as houses or businesses. But life insurance can also be helpful for people who have debt—if you pass away and still owe a debt of nearly any kind, it is likely that those debts will be passed on to your next of kin. The money from a life insurance policy can help pay down some of those debts and even get rid of them entirely so that your estate doesn’t have to worry about paying them. 

Unfortunately, many black people are underinsured. And it has to do with many factors including historical discrimination from life insurance companies. Life insurance companies were known for offering fewer benefits and higher prices to black people compared to whites. And of course, black people have typically earned less than white people, which may be another explanation for lower contributions to their life insurance. Though things aren’t perfect, that has improved over time.

A smiling woman jumping for joy with confetti
Image via Clay Banks on Unsplash

Why It’s Important to Have a Policy?

It was also reported that 8 out of 10 black people bought life insurance as a way to build generational wealth, compared to 7 out of 10 whites. With the income and wealth gap still so far behind for black people in America, I personally don’t have a problem with us trying to help out our future generations the best we can!

The survey also revealed that people (black and white) overestimate the cost of life insurance. There are many factors that go into it, but one thing that is true is that the younger you are, the cheaper your premium. I turn 25 in a few weeks and my premium is just a little under $19 a month. I got my insurance through my car insurance company and one of the perks of buying it from them was that it lowered my car insurance. And even if you’re older than 25, it is still important to consider the benefits, if you’re able to pay for the higher premium.

Depending on what type of policy you buy, you can always change it too. In fact, it’s encouraged that you review your plan for your death on a yearly basis since life is always changing our goals. 

If buying life insurance, or reviewing your current life insurance policy is not something you’ve already been thinking about, hopefully, you’ll use these resources to begin the process.

About author


MeaResea is a native of Stone Mountain, Georgia and currently lives in Atlanta. While she attended Agnes Scott College, a small, traditionally all women’s, college in Decatur, Georgia, she majored in Economics and minored in Spanish. She’s always had a passion for writing, however. In her free time, she loves doing yoga, trying new recipes, reading various fiction titles, and spending time with friends and family.