The journey to financial security for Black Americans

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While financial security is important to everyone, in recognition of Black History Month, let’s take a look at the financial security, knowledge and concerns of Black Americans. 

Black Americans have started from a position of greater financial adversity. For example, while Black Americans make up approximately 15% of the U.S. population, they only represent 4% of assets owned. The good news is that this group is highly engaged and eager to access resources that can help improve their financial well-being.

This commitment to financial growth is reflected in their approach to life insurance, where ownership and awareness are notably high. Fifty-seven percent of Black Americans self-report owning life insurance, seven points higher than the overall ownership rate of 51%. They also report a higher knowledge of life insurance. 

However, 49% of Black Americans reported a gap between what they own and what they need, compared to 37% of White Americans. Despite higher ownership, it’s clear that many Black Americans do not feel they have enough coverage to protect their loved ones. Forty-two percent of Black Americans who haven’t purchased life insurance believe it is too expensive, and roughly a third stated they have other financial priorities at the moment.  

If this sounds familiar, you can take steps to secure the right coverage to protect your loved ones’ financial future. 

Start with your employer

Over three-quarters of Black American workers view their workplace benefits as an integral part of their financial well-being. Find out if your employer provides life insurance as part of your annual benefits package. Attend benefits meetings during open enrollment so that you can learn more, ask questions and get advice. Some companies provide tools, such as calculators, to help you determine how much insurance is needed for adequate coverage. Additionally, many insurers offer referrals to financial professionals, making it easier to find an advisor who meets your needs.

If your company doesn’t offer this tool, you can use our coverage calculator.

Find a financial professional that you can trust

Life insurance can be confusing, and having a financial advisor to turn to can alleviate some of that confusion. A good advisor can talk through your financial priorities and help alleviate some of the challenges that prevent you from buying the coverage you need. Finding an advisor who understands the unique challenges faced by Black adults is even more important. 

If your company doesn’t provide life insurance, the coverage isn’t enough, or they don’t provide referrals, there are still ways to get the information and coverage you need. If you know someone who has an advisor that they like and trust, ask for a recommendation. Additionally, many people feel more comfortable with an advisor of a similar demographic. The Association of African American Financial Advisors website can help match you to someone who fits your needs. 

According to LIMRA’s January 2025 consumer sentiment study, more Black Americans (61%) believe their personal financial situation will improve in 2025 compared with the general population (51%). This is great news. Life insurance is an important part of ensuring financial wellness and security. 

Life insurance is a deeply personal decision, but open conversations about topics like death, family history and leaving loved ones behind are essential. As we celebrate Black History Month, take the time to put yourself and your family’s future security first.

Karen Terry

 

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Karen Terry leads the Individual Product Research team, developing and implementing LIMRA's research program for individual life, disability, long-term care and critical illness insurance products in the U.S. and Canada.