Black Americans More Likely To Buy Life Insurance Than General Population

[DHK]

Black Americans More Likely to Buy Life Insurance Than the General Population – National Association Of Insurance And Financial Advisor

Combine that with this:
Study: Here's the real reason for America's racial wealth gap

So what does account for the racial gap in wealth? Traub admits that “we haven’t fully penetrated the mystery.” One powerful factor seems to be that whites are five times as likely as blacks to receive substantial gifts and inheritances, and the sums they get tend to be much larger. The money “can be used to jump-start further wealth accumulation, for example, by enabling white families to buy homes and begin acquiring equity earlier in their lives,” the study says.

The result is that whites’ wealth advantage—and blacks’ disadvantage—gets passed down from generation to generation. Which means that forms of racial discrimination “that happened in the past like redlining continue to show up in bank accounts today,” says Traub.

 

[DHK]

Life insurance can be that 'gift' for only pennies on the dollar per year.

 

[Bernanke]

Great info DHK! Much Obliged!

 

[jboussea]

With some proper legacy planning and financial literacy .. the gap could shrink ..

One generation sacrificing for the next ...

You can't just keep using the next man's blueprint to try and get ahead of the next man ..

 

[papercutter]

So the fact that certain minorities tend to have lots of illegitimate children with multiple fathers who offer very little paternal investment in their children's upbringing, is this Whitey's fault too?

 

[jboussea]

So the fact that certain minorities tend to have lots of illegitimate children with multiple fathers who offer very little paternal investment in their children's upbringing, is this Whitey's fault too?

Wow... Did you even bother to read the article? the article has nothing to do with blaming whitey..

 

[WinoBlues]

Wow... Did you even bother to read the article? the article has nothing to do with blaming whitey..

That.

Someone may be seeing something that is not there.

 

[Justin Bilyj]

Could you imagine the upward mobility black people would have, if everyone in one generation bought life insurance?

 

[scagnt83]

Could you imagine the upward mobility black people would have, if everyone in one generation bought life insurance?

According to the article, they are already buying it in greater %s vs. other ethnicities. So there is something missing.... perhaps they are underinsured compared to other people who buy life insurance? That would be my guess from experience.

In my experience, Im twice as likely to sell a life policy to a black person, but its more likely to be a small WL policy. White people prefer a large Term policy. (generalizing there of course, based on 10+ years in the life biz)

Of course few of those Term policies ever pay out. So life insurance is not the reason for the wealth gap. But it certainly could help to bridge it, as DHK suggested.

 

[Cash]

According to the article, they are already buying it in greater %s vs. other ethnicities. So there is something missing.... perhaps they are underinsured compared to other people who buy life insurance? That would be my guess from experience.

In my experience, Im twice as likely to sell a life policy to a black person, but its more likely to be a small WL policy. White people prefer a large Term policy. (generalizing there of course, based on 10+ years in the life biz)

Of course few of those Term policies ever pay out. So life insurance is not the reason for the wealth gap. But it certainly could help to bridge it, as DHK suggested.

$10,000 policies don't create multi-generational wealth; they pay for a funeral and maybe a $1,000 per kid.

Also holding on to expensive FE policies and even term is a problem, especially when you consider the companies that target this demographic are expensive.