Ownership and the Need for Coverage
Black American life insurance ownership increased during the pandemic. The majority of Black Americans (56%) own life insurance, up three percentage points from 2020. However, 46% of Black Americans —anestimated20million—believetheyneed(orneedmore)coverage.
Financial Concerns
Black Americans report a higher level of financial concern than the overall U.S. population.The prevalence of these concerns, coupled with the disproportionate impact of COVID-19 on Black Americans, is influencing their likelihood to buy life insurance in the next year.
6 in 10 Black Americans plan to purchase coverage this year!
Three Reasons for Owning Life Insurance
- Payforburialcostsandfinalexpenses—66%
- Wealthtransfer—39%
- Supplement retirement income—33%
Top Three Reasons for Not Buying Life Insurance
- Tooexpensive—31%
- Other financial priorities—30%
- Not sure how much I need/what type to buy—22%
Lack of Knowledge Plays a Role in Coverage Gap
- 5% of Black Americans overestimate the cost of life. The average annual cost of a 20-year term policy for a healthy 30-year-old man is $165. *Half of Americans overestimate this cost threefold.
- Fewer than 4 in 10 Black Americans feel very knowledgeable about life insurance, inline with the general.
Greater Interest in Working With a Financial Planner
Today, 43% of Black Americans report working with a financial professional, consistent with the na-tional average. However, Black Americans are more likely than the general population to be looking to engage a financial professional(30%versus25%).
