Newly released findings from the 2021 Barometer Study reveal the majority of Black Americans own life insurance (56%), up three percentage points from 2020 and four percentage points higher than the general population. Yet this still represents a 19-point gap from the 75% of Black Americans who believe they need life insurance.

“While our research shows that Black Americans are more likely to own life insurance than any other race , the reality is 46% — 20 million adults — say they need (or need more) life insurance coverage, which identifies a significant coverage gap,” said David Levenson, president and CEO, LL Global, LIMRA and LOMA. "It is up to our industry to help these individuals get the coverage they need to protect their families’ financial security.”

Black Americans experience higher levels of financial concerns
The study finds Black Americans report a higher level of financial concern than the overall population average and COVID-19 exacerbated these concerns. Black Americans were significantly more likely to be concerned about being able to save for an emergency fund, pay their monthly bills and their mortgage, and leaving their families in a difficult situation due to a premature death.

“The prevalence of these concerns, coupled with the disproportionate impact of COVID-19 on Black Americans, are driving forces behind their likelihood to buy life insurance in the next year,” noted Levenson. “Our research shows 6 in 10 Black Americans plan to purchase life insurance within the next year, which is much higher than the national average (36%).”

Misconceptions may deter Black Americans from getting (enough) coverage
Like most Americans, Black Americans’ misconceptions about life insurance prevent them from getting the coverage they need. While the top reason Black Americans give for not purchasing coverage is that it’s too expensive, the study finds Black Americans are more likely than the general population to overestimate the cost of life insurance (75% versus 50%). They are more likely to believe the coverage they get through their employer is adequate, as well.

The study also shows that Black Americans are more likely than other market segments to view life insurance only for burial and final expenses. Thirty percent of Black Americans believe that life insurance is only for final expenses and 66% say that is the primary reason they own life insurance. Just 48% of the general population say the same. This perception of life insurance could result in Black Americans not purchasing enough coverage to provide income replacement or enable wealth transfer, two key ways life insurance can benefit loved ones after a wage earner dies.

Looking for advice
Prior LIMRA research shows that those who work with a financial professional are more likely to purchase life insurance. According to the study, 43% of Black Americans currently work with a professional financial advisor and another 30% indicate they are currently seeking a financial advisor, which is higher than the general population average.

“The findings from this report demonstrate that we still have work to do to educate consumers about how affordable and accessible life insurance really is or the many ways it can be used as a foundation to protect the ones we love,” said Levenson. “Working with the 330,000 life-licensed agents and advisors, the industry can help dispel consumers’ misconceptions about life insurance and remove some of the obstacles that prevent Americans from getting the coverage they need.”

LIMRA is honored to lead the Help Protect Our Families campaign, an industrywide effort to raise awareness about the importance of life insurance and help carriers and distributors address the growing coverage gap in the United States.

The 2021 Insurance Barometer Study, conducted jointly by industry nonprofit LIMRA and Life Happens for the past 11 years, examines the financial attitudes and behaviors of Americans, with an emphasis on life insurance.
 
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Author: LIMRA
Source: © 2021, LL Global
Retrieved from: https://www.limra.com/
FINRA Compliance Reviewed by Red Oak:  1735541

​On our Lunch & Learn we had Gregory R. Palmer present great information on Buy-Sell Agreements. I know that many business owners rarely think about or under-value the need for such agreements. In a world where anything can happen, you can no longer afford to ignore the possible changes in business ownership. Watch it now!
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#smallbusiness
​#legalissues

You’ve recently been involved in an automobile accident. Regardless of who was at fault, you will probably be footing some kind of bill, at least for the time being. Crashing your car can be a traumatic experience for many, and the added toll of a hospital visit and having your car in the shop for weeks can add even more turmoil after the initial collision. You are probably filled with questions about the best path forward, and knowing that the bills are about to stack up, you might be wondering how you will be able to balance these new unexpected costs. Here are a few things to keep in mind when getting back on your feet financially. 

Readjust Your Budget
 
Now might be a time you really wish you had an emergency fund. If not, don’t worry. There are still ways to repair your wallet and recover financially. Your first step will be to make a few changes to your budget. Now that you have additional payments to make, you will want to move your excess money around to help compensate for the loss. This may mean dropping unnecessary expenses for a while, such as renewing your Netflix subscription. Next you might consider picking up some extra odd jobs when you can for some additional funds to help pay off hospital or repair bills.
 
Taking Out Loans and Protecting Your Credit
 
As the bills begin to pile up all around, you may feel like taking the leap and accepting a loan to help shoulder some of the burden. While loans can be great in a pinch, you need to be very cautious when accepting them. Many loan-sharks will try to prey upon you in your time of need, and offer you quick cash in exchange for unbelievable fees and interest rates. Your bottom line should be to protect your credit score at all costs. Don’t apply for loans that will hurt you in the long run, and try first to budget your way out of this situation. A better solution for you might be crowdfunding your bills. These sites will help you reach out to family and friends and ask for donations. If your crowdfunding page gains enough traction, you might just get enough cash to really help ease the pressure for the time being. The great thing about crowdfunding, is that once you receive the money, you are not obligated to pay it back.
 
Considering Taking Legal Action
 
If your accident has led to unforeseen complications, such as later hospital visits, or missing several days of work without any payment, you might just have a case for compensation. Taking legal action can be a lengthy, and sometimes grueling process, but if you are faced with no other solution, and feel like you are owed money from either the other party in the crash, or your insurance company, now may be the time. If the other party involved in the accident was under the influence of drugs and alcohol you might be able to earn compensation for your vehicle damage, medical bills, and missed income. If you were injured in your car accident, taking legal action may also qualify you for contingency payments, which will cover your medical costs until your trial ends.
 
At the end of the day, you will want to do your best to save as much money as you can. If you were injured in a car accident, or if your livelihood depends on a car that’s now totaled, you need to take whatever steps necessary to ensure that you get back on your feet. Involvement in a car accident can be a draining experience, but if you are insured, and informed, it doesn’t have to be a drain on your wallet.
 
Author: Jim McKinley
Photo Credit: Pixabay
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​Welcome to our new insurance agency blog!
 
This is our very first post. We're not quite sure what we're going to write about here, but the plan is to create helpful content for customers and prospective clients about information that is relevant to you.
 
We hope you'll come to view this as a top resource for keeping your family and your finances safe.
 
Here are a few of the topics we may be writing about:

• Answers to clients' frequently asked questions.
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• Local Community Information.

 
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