If Black People Are So Smart, Why Don't Most Black People Have Life Insurance?
"That's a bit cheeky to say, 'If Black People Are So Smart, Why Don't Most Black People Have Life Insurance ?' "
Sorry to have to put it so bluntly, but we don't.
It isn't the easiest subject to talk about, however let's face the facts.
One day (statistically speaking LOL!) You will DEAD !
The only funny thing about this (funny peculiar, not funny "HaHa") is that even though we know this, plus we've experienced family, friends and even strangers die, we don't think about life insurance.
That's a bit odd!
Because of this wonderful tool called the Internet, people are now able to put up GoFundMe pages online to request funding for various projects, business ideas etc.
Believe it or not, one of the biggest trends now is putting up GoFundMe pages to pay for funerals.
Excuse the pun, there is no FUN in someone dying, and having to arrange their funeral.
Especially when the person who has passed does not have life insurance.
Imagine the physical, financial and EMOTIONAL burden of having lost a loved one, then having to ask every and anyone to help to pay for the burial, of someone who had their entire working life, to pay for or at least pay something towards, their own funeral and they didn't bother.
What would YOUR thoughts be towards that person, if YOU were the one who had to pay?
Sure, many people will say, "Oh it's ok, I loved them so dearly, I will just pay for it."
One way to look at it, is this;
If they loved YOU so dearly, could they have put at least a little money aside every month, to pay for the inevitable - their funeral?
Also if they loved you so dearly, they could have made you a beneficiary of their life insurance policy, so that you could have easily paid for their funeral AND received a payout too!
Excuse the directness of this article, however the fact remains that most black people don't have life insurance, and we NEED to address this.
So, let's look at some of the reasons why most black people don't have life insurance.
If you look at the origins of modern life insurance you will see that it began in 1706, in England by William Talbot (Bishop Of Oxford) and Sir Thomas Allen.
Their company Amicable Society for a Perpetual Assurance Office, or Amicable Society as it was also called, was started with approximately 2000 members, who each contributed a fixed annual payment, which was divided at the end of the year among the wives and children of the deceased members.
These people were considered to be among the British elite. Additionally most of the British elite at that time, (as now) were VERY wealthy.
As you are probably aware, in 1706 black people were definitely not considered "elite" (Hint: Transatlantic slavery, of which Britain was a major player.)
In fact according to Wikipedia "By the 1690s, the English were shipping the most slaves from West Africa."
Basically, black people were not in a position to obtain life insurance.
However, having said that, the irony is that they possibly could have been insured, as property of slave owners, who also would have been the beneficiaries in the event of the slaves' death.
So Why Don't Most Black People Have Life Insurance In The 21st Century ?
Up to a few decades ago, many of us were definitely unaware of true wealth building. We are great at spending money but not always great at spending it WISELY. (See: Should Black People Invest In The Stock Market ?)
Another reason that most black people don't have life insurance, is because until recently, most black people did not know how to invest money for inter-generational wealth building purposes.
Yes, that's right. Life insurance is a form of inter-generational wealth building.
More about this later.
Can you now see that it's a real problem that most black people don't have life insurance in the 21st century ?
Think about this;
What do you value most in your LIFE?
Your dog or cat ? You've probably got pet insurance.
Your car ? You've probably got car insurance.
Your house and possessions ? You've probably got house and contents insurance.
Your holidays ? You probably get holiday insurance when you travel.**
Your business ? You probably have at least 1 type of business insurance.
Your MOBILE / CELL / SMART PHONE ?!! Yep, you've probably got that insured too.
Your LIFE ? Nada, none, not a penny invested in life insurance.
Hello? Anyone home? Has someone got their priorities a little mixed up ?!
Watch this excellent video by Dawn Douglas, an insurance specialist, who explains thoroughly, why there is an URGENT NEED for ALL OF US to review this desperately silly situation, that black people are in.
After reading this article and watching this video, if you feel that life insurance is not for you, please realise that YOU WILL KNOWINGLY BE PUTTING AN UNNECESSARY BURDEN, ON THE PEOPLE YOU SAY YOU CARE ABOUT !
AND ADDING TO THE EXISTING BURDENS OF THE BLACK RACE.
Simply put, when you DIE, or transition or pass on or pass away, or float up to heaven or WHATEVER, someone else WILL HAVE THE RESPONSIBILITY of putting your body into the ground in a nice coffin, or getting you cremated, (we will talk about the importance of Wills in another article) and it costs money - LOTS of money.
If you don't have life insurance, that money that someone else will have to pay for your funeral, they could have spent it on: their children, their childrens' or their grand-childrens' education, something for themselves. An investment, anything.
Speaking about investments, not many people realise that some of the wealthy people today, became wealthy because their parents or someone else, could be bothered to invest in a life insurance policy, that meant their children and grandchildren etc. inherited the value of the life insurance policy when the policy holder died.
That is just one of the reasons why the black race is one of the poorest races. We aren't doing this enough - leaving our younger generations LARGE SUMS OF CASH and teaching them about financial literacy.
Dr. Boyce Watkins, from The Black Business School, gives an excellent talk on this:
So why do you think it's ok, for someone else to HAVE TO pay for YOUR funeral ?
Guess what ? It's NOT OK.
Here is a quick test for anyone who does NOT have life insurance:
Imagine the type of funeral you'd like to have.
Horse drawn carriage maybe? Or a shiny black Mercedes hearse?
Oak coffin or maybe mahogany wood?
10 people in attendance? 100, 200 ?
The engraved words on your headstone have got to be right too, yes? Definitely NO typos !
Now think of the people who will be burying you, and imagine the type of funeral THEY will arrange for you. Remember to consider the cost of the hearse, church / mosque / venue, undertakers costs, headstone, graveyard costs, coffin, interment / burial costs, reception / gathering etc. etc. etc.
Ask them if they are financially prepared to pay for your funeral, and how much are they willing to spend, because you were thinking / hoping they were going to foot the bill.
Listen carefully to their reaction !!
While you are alive, and are of sound mind, your funeral is YOUR responsibility. So, get it sorted !
As a race, we want to be saying, "we're financially literate, we've got life insurance", not asking, "why don't most black people have life insurance?"
Well, hopefully now we can see how vital this article is, and will spread the word and, as a community, we will have this very necessary discussion and DO THE RIGHT THING.
If you are living in the UK, or are interested in arranging life insurance for someone in the UK, please get in touch via our contact form for assistance.
Have a great day.