Even though Black people are largely more insured than the rest of the population, a majority of our policies only cover funeral costs. This means that for many of us, our families' financial futures may be at risk because our financial obligations will be passed on.
According to LIMRA, 75% of Black Americans overestimated the cost of life insurance. It may seem like an expensive investment, but often a good policy is affordable. Investing in one could help pay for child care, education costs, mortgages, and more.
So, what does a good policy look like? Generally, it is good to have ten times your annual income in life insurance coverage. It pays to plan ahead this way.
Capitalism exploits so much from our labor. The least we can do in this economic system is take the money we’ve earned and ensure that it goes directly to our families after we pass. Even a little here and there could be the difference in our families surviving in America.
Life insurance policies often just cover our funeral expenses, but by investing more into these policies, we could leave more for our families to survive in this economy.