Black people typically buy life insurance more than any other race – but not all of us are using these funds in the best way to set ourselves up for financial security.
Life insurance policies are getting even more relevant for Black people because of how COVID-19 ravaged our communities. But we could be using these life insurance checks for a lot more than we actually do – and they could potentially solve a big problem for us.
Of course, most of us use life insurance checks to pay for funerals. Funerals can be expensive, and can often put people in debt.
But that’s not the only way to spend a life insurance check.
Just because these checks stem from tragedy, doesn’t mean we only have to use them for burial celebrations. This money can offer more financial opportunities for everyone – it could go into savings, trade school tuition, paying off debts, investment, or otherwise to fill gaps that our loved ones may have left behind.
As Black people, we should prepare for all aspects of life – including death. But life insurance is not something we should only use for funerals. We can use those checks to help build a great life for our families and turn a terrible tragedy into a successful financial future.