Despite being more likely to have life insurance, Black individuals are far more underinsured than whites
PR Newswire
NEW YORK, Sept. 24, 2020
NEW YORK, Sept. 24, 2020 /PRNewswire/ -- Important research today from Haven Life reveals that Black individuals are far more underinsured than white individuals. Haven Life, a customer-centric life insurance agency backed and wholly owned by Massachusetts Mutual Life Insurance Company (MassMutual), conducted this national survey during Life Insurance Awareness Month to better understand how Black and white individuals view life insurance, and what (if any) impact that might have on the racial wealth gap.
The key insight from the survey shows that while Black respondents are more likely to have life insurance, their coverage amounts are strikingly lower than what is recommended to adequately protect their families' financial futures. Eighty-one percent of Black respondents indicate they have life insurance, either through work or individually, compared to 70 percent of white respondents. Median incomes for the Black and white survey respondents are similar: Black respondents earn $50,162 and white respondents earn $54,823. Yet when asked about their existing life insurance coverage amounts, white individuals state they have a median coverage amount of $150,000, while Black individuals report having $50,000 in coverage.
The life insurance industry suggests that adequate life insurance coverage should be 5 to 10 times the amount of a person's income. Based on this calculation, both Black and white survey respondents do not buy enough life insurance coverage, but Black respondents are substantially more underinsured.
Additional findings from the survey include:
Overall, the survey results show that there are key differences in how Black and white respondents view life insurance. Black individuals appear to value the idea of life insurance more than white individuals and consider coverage to be an important component for building generational wealth. However, Black individuals do not purchase nearly as much coverage and are subsequently more underinsured.
Read the full Life Insurance and Race report.
Survey methodology: Haven Life conducted a quantitative survey between August 17 – 26, 2020 and collected N=653 completed responses. Respondents were required to be between 18-60 years old and identify as either Black only (N=264) or white only (N=389). The median respondent's age was 34.
About Haven Life
Haven Life Insurance Agency, LLC is a life insurance startup, backed and wholly owned by MassMutual, that offers a simple online experience for buying high-quality and affordable coverage. Driven by a mission to make life less hard, we're committed to changing life insurance so that it's less time-consuming and far more rewarding.
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SOURCE Haven Life