Black American Life Insurance Ownership Increases (Inforgraphic)

This publication is a benet of LIMRA membership. No part may be shared with

other organizations or reproduced in any form without LL Global’s and Life Happens’

written permission.

1262- 0621 (50700-10-403-21002)

Black American

Life Insurance

Ownership Increases

LIMRA’s annual Insurance Barometer study tracks the perceptions, attitudes, and behaviors

of adult consumers related to nancial behaviors, with a focus on life insurance.

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 —

an estimated 20 million — believe they need (or need more) coverage.

Financial Concerns

Black Americans report a higher level of nancial concern than the overall U.S. population.

The prevalence of these concerns, coupled with the disproportionate impact of COVID-19

on Black Americans, is inuencing their likelihood to buy life insurance in the next year.

Top Three Reasons for Not Buying Life Insurance

Top Three Reasons for Owning Life Insurance

6 in 10 Black Americans plan to purchase coverage this year!

1. Pay for burial costs and nal expenses — 66%

2. Wealth transfer — 39%

3. Supplement retirement income — 33%

1. Too expensive — 31%

2. Other nancial priorities — 30%

3. Not sure how much I need/what type to buy — 22%

Greater Interest in Working With a Financial Planner

Lack of Knowledge Plays a Role in Coverage Gap

• 75% of Black Americans overestimate the cost of life insurance. 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, in line with the

general population.

Today, 43% of Black Americans report working with a nancial professional, consistent with the na-

tional average. However, Black Americans are more likely than the general population to be looking

to engage a nancial professional (30% versus 25%).

*https://www.term4sale.com/ (accessed June 15, 2021)

METHODOLOGY

In January 2021, LIMRA and Life Happens engaged an online panel to survey adult consumers who are nancial

decision makers in their households. The survey generated 3,007 responses, including an intentional oversample

of Black Americans. This supplemental report focuses on responses from the 346 Black American respondents.