Not everyone realizes the importance of life insurance, but everyone needs it. Due to the falsehoods surrounding life insurance among black people, it is necessary to figure out what is correct and what is not before you can decide on which type of life insurance to purchase, or even whether to purchase one or not.

For black Americans, life insurance equals burial expenses. This belief stems from the unfair race-based life pricing of black people in the country as far back as the 1800s.

This ugly history is a practice that encouraged buying small policies for covering funeral costs, and it did not completely stop until the 21st century.

Even though there are higher chances of a black person having life insurance, they are more underinsured, and this is due to certain myths that they have about life insurance.

A few of these myths about life insurance among black people are:

1. It is only for burial expenses: When explained about the necessities of life insurance, black people have been seen to show more interest in purchasing one. The belief that life insurance only equals preparation for death is a myth that has only been held because of how ungainful it usually is for blacks.

2. It will only benefit them after death: Being unable to see the gains or value of life insurance while alive is the biggest reason black people see it as burial expenses. However, life insurance has several financial values to offer and can cover a lot of personal expenses that might be incurred from injuries or sicknesses.

3. Overestimating the cost of coverage: Black clients often believe the coverage that they or their family needs should not be up to a certain amount. There is the fear of how costly it would be, and they are usually surprised when they learn about how inexpensive it is to purchase.

4. Making their kids lazy: Most, if not all black clients, were raised to be hard workers. Black people were taught to work twice as hard to get the things they needed/need to survive. They also believe that life insurance is a way of passing down generational wealth.

 With the mindset of hard work, they harbor the fear that their kids would be the opposite of hard workers fully dependent on their parents’ insurance legacy.

Situations like that are not unlikely. However, they can be prevented with a living trust and with proper estate planning.

5. Coverage from their job is enough: The insurance that you get from your employer is not enough. The coverage can be reduced or trimmed by your employer at their discretion. Work benefits are usually just for the particular job you are doing at that time. You lose that coverage if you lose your job or retire.

Supplementing your work coverage with personal life insurance is a smart thing to do.

If you are a black person trying to figure out why you should get life insurance, this article is for you. But, first, understand that you need life insurance, whole life or term life; it is up to you.

Avoid creating a financial burden for your loved ones when you pass; just ensure that you have something.