*CORRECTED* Six in 10 Black American households (approximately 9.9 million) indicate they are fairly or very likely to buy life insurance for themselves or another member of their household in the next 12 months, compared to just 45 percent of the general population.
Segments of the Black American population who are most likely to buy include those under age 54, all income brackets, and couples with children.
LIMRA’s research finds nearly half (47 percent) of Black Americans feel that their household members should have more life insurance coverage. One-third of insured Black Americans say they will face financial problems almost immediately should the primary wage earner die. The average amount of years of replacement coverage for Black American households is 2.8 years, compared with an average of three years for the general population.
Black Americans say some reasons preventing them from buying life insurance include having other financial priorities and having a difficult time deciding what to buy. Among those who are likely to buy, two-thirds say they find it difficult deciding what type and how much coverage to purchase.
LIMRA’s Black Americans: U.S. Life Insurance Ownership study, conducted in early 2016, is based on a sub-sample of 456 Black American households from the original sample of 4,197 households. The study, to be released March 2017, examines data on U.S. life insurance ownership levels, buying patterns, and attitudes of the Black American market.
For more information on this topic, view LIMRA’s infographic, Black American Life Insurance Ownership: Discovering New Opportunities (2017).