Survey Exposes Gaps In Black Ownership Of Life Insurance
November 4, 2020 by John Egan, Amy Danise
As far back as the 1800s, some Black Americans have associated life insurance primarily with one thing: paying for burial expenses. It’s part of the ugly history of race-based life insurance pricing, a practice that promoted buying small policies to cover funeral costs and that didn’t fully wind down until the 21st century.
“For decades, it was a standard practice at some insurance companies to charge Blacks more for products and offer them small face amount burial insurance that provided little value for the premium paid. These practices led to litigation and settlements that were resolved not that long ago,” says Judy Hopkins, head of legal at Haven Life.