The life insurance gap in the United States
Millions of Americans live in scarcity, and a scarcity mentality views life insurance or other investments as a luxury because the immediate impact of an expense cannot be seen, unlike others. more pressing financial priorities, like shopping for groceries or paying the electric bill. Plus, poorer individuals and families are less likely to be able to put money aside for the future, especially when the value of the investment comes after you leave. The importance of having life insurance while you’re still alive is simply not communicated to historically marginalized groups. And, as insurers seek to educate new generations of consumers, these same groups continue to be left behind.
Many feel that life insurance is only valuable to pay for funeral expenses, further widening the insurance gap between wealthy and low-income households.
False perceptions of insurance among poorer groups are the product of a story where groups such as health insurance, mortgages, auto loans and adequate life insurance have been denied. entire people according to race, which has resulted in a drastic gap in the ownership of insurance between blacks and whites.
As we continue to seek to recover from the trials and tribulations of the past few months, insurers may insist on how people should perceive the benefits of life insurance. during their lives and how he can support their families after they die. By working more closely with underserved communities to offer and communicate policies to people in diverse situations, we can better educate families and individuals on how to use life insurance so that they can benefit from it. the benefits during and after their lives.
While the past 18 months may have revealed the importance of life insurance to a new generation of consumers, the cost of uninsurance cannot be overstated. Closing the life insurance gap has never been more important.
Andreja Stevanovic is Executive Vice President and Head of Insurance Operations at QuinStreet, a company that provides information and tools on digital media that can connect consumers to brands.