5 MYTHS KEEPING BLACK AMERICANS FROM BUYING LIFE trailed and having lifelong job success leads to a personal attachment to the benefits that came with it. “The mentality is ‘I've worked. I've done everything right. I'm going to utilize these benefits. That's enough for me,’” Joyce said. The conversation should start with, “How do we supplement what you already have to make sure that your family is completely covered?” Joyce added. “The second thing that I would say is, have a conversation and appeal to reason about what that life insurance coverage at work truly means.” Often it is some multiple of a person's salary, and that might not be enough to provide for surviving family members in an emergency situation.
mindset of, ‘Life insurance is just for the people that I leave behind. Who cares? I’m dead,’ talk to them about some of the benefits to them while they’re alive,” Joyce said. “And I think that would help to really shift the tone of the conversation.”
Myth #5: $5 Million Is Too Much
Many Black Americans watch television shows like “Unsolved Mysteries” and “Dateline,” Joyce said, which highlight stories of murders being committed for the life insurance proceeds. It creates a lot of reluctance and inaccurate perceptions around buying life insurance. People think a million-dollar policy must cost a thousand dollars a month, Joyce added.
Why Do They Buy?
83% want their life insurance proceeds to 68% pay for a child’s college education. to leave 37% iantend legacy. use life insurance to 28% transfer wealth. iew it as a key way to take care v of their families.
As with many clients, it can be difficult to get Black Americans to personalize the benefits of life insurance. “There's only a benefit if I die, and I'm dead. So why do I care?” said Joyce, recounting a typical conversation. “I have, unfortunately, heard that many, many times." Education is key to countering this myth as well. Hall Eskew conceded that she did not know much about life insurance prior to joining the industry. Now she has a term life insurance policy with a benefit rider. “If you have someone who has the
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“When I tell them it’s $65 a month, they let their guard down,” he said. “The first thing that I try to accomplish when working with a couple, especially from a life insurance needs standpoint, is we’re going to figure out what the need is. Before we talk about term, before we talk about whole life and all these things.” I n s u r a n c e N ews N e t Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at john.hilton@innfeedback.com. Follow him on Twitter @INNJohnH.
October 2020 » InsuranceNewsNet Magazine
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SOURCE: New York Life’s Life Insurance Gap study 2019
Myth #4: It's Only For My Beneficiary
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