African-Americans and Life Insurance

African Americans has been neglected in the understanding of the need for life insurance? What has shaped African Americans views toward life insurance, and what can be done to change some of these misconceptions?

On the debit insurance agent chasing her grandmother to collect the premium from 10 cents have gone long. However, in many ways, this interaction still has a chilling affect many in the African American community. At one point, the life insurance business in the African American community is known as “burial insurance.” African Americans were only allowed to buy a small policy to bury themselves and this is the way it was marketed to them. However, many times, their Caucasian counterparts, who had the same kind of insurance policy, pay less and were given greater coverage. But today the life insurance companies are not allowed to know the race of people seeking insurance.

Today in the African American community, some still have the “burial insurance” mentality toward life insurance. However, many African-Americans have been upgraded, and have enough insurance to pay for their homes and bury them. Through careful marketing in the late sixties and early seventies, African Americans went to buy additional life insurance in the purchase of a house. It appears that creditors wanted to make sure that African Americans moved into houses, that their investments in the mortgage would be paid in case of premature death. As some African Americans found new avenues of success in their careers, thanks in part to the civil rights moment, many of these people were covered by insurance agents who began to illuminate the life insurance business. The “funeral” and “mortgage protection” attitudes life insurance were replaced. Life insurance was revised to read:

1.

To pay the entire debt
2.

Provide income to the spouse and children left behind
3.

To create a trust to leave money to their church or organization
4.

Paying for children for higher education including university, in the event of death
5.

One way to keep key employees from leaving their current job
6.

A vehicle to buy out children who are not involved in the family business

Other African-Americans have fallen into my “life insurance at work trap.” At work you have $ 30000 life insurance or perhaps two or three times their salary if you’re lucky. Let’s say you do at the age of retirement with your company, and 60000 dollars a year to retirement. Many times it can convert its group life insurance age, as a whole universal life or life insurance policy. You will not be paying $ 5 a month for their group insurance to retirement. Therefore, if you are a sixty-five years old, and to retain a value of $ 100000 coverage by converting its group insurance, which can receive a premium of $ 469 per month. You might think that is not fair, but this is the reality. It also sometimes is allowed to maintain a times their salary for insurance in retirement, then cuts in the average age of 68 and get off at levels of $ 10000 at age 70. While others still have no life insurance company of its group insurance to retirement, because there is no conversion privilege.

If African Americans have been buying life insurance for a benefit in the event of death or “mortgage protection,” how is being neglected? Unfortunately, some African Americans’ life insurance policies are so similar, you might think they were aligned in space to buy. The purchase of this product should be based on its particular objectives, keeping in mind their family obligations. people in the dome of the African American community, are generally aware of the uses of life insurance, and use them to improve the lives of their families and businesses. However, it seems the lack of financial planning and insurance transfer knowledge, from the elite of African-American communities, who have less or are not considered part of the professional class. On the other hand, unfortunately, some insurance agents seeking to sell products to Americans-Americans, instead to educate them, so they can educate others about these issues.

It’s all about education in the African American community, especially when it comes to life insurance. For many African-Americans, which in turn to their ministers for guidance on insurance and financial planning. Let us hope that his minister has received the message, and are willing to share their knowledge with all its members. Otherwise we will continue to have a community where children have been orphaned because of the lack of life insurance or the spouse has lost the house, because they could not pay the mortgage. You have to be able to see this last year, $ 30,000 can take care of her daughter for a couple of years, but Social Security Selection not pay the cost of raising a child. Some in the African American community spent $ 500 on a car note, but did not have enough life insurance to feed, clothe, or send their children to college, as well as to provide income for their spouses if they die. While some echo, “I do not want to leave my family rich,” is best left to his family that rich poor.

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