The Legacy Gap: Why Life Insurance and Financial Literacy Matter in the Black Community

Let’s be real: The Black community faces unique challenges when it comes to creating generational wealth. The numbers don’t lie. The average Black household earns just $46,073 a year, while white households average $78,999. When it comes to savings, the gap widens even further—$3,000 versus $25,000. And if that wasn’t enough, nearly half of Black families don’t have any life insurance at all.

This isn’t just about money; it’s about opportunity. Families who save and invest can pass down homes, businesses, and stability. But when wealth isn’t there, we’re left to start over with each generation. That’s the cycle we’re fighting to break.

The Health Factor

Our struggle is made even harder by our health disparities. Let’s face it, we are the sickest population in the United States when it comes to diabetes, hypertension, and heart disease. We’re 60% more likely than white Americans to have diabetes, and we die from it at higher rates, too.

The financial burden of these conditions is devastating. Medical bills drain savings and create debt, making it harder to prioritize financial planning. Even worse, many of us believe our health issues make us ineligible for life insurance. So, we avoid applying altogether.

Breaking Down Barriers

This belief—that life insurance is out of reach—is costing us dearly. Life insurance isn’t just about covering funeral expenses. It’s a powerful tool for building generational wealth. Yet, myths and misinformation are keeping us from using it.

Some of us think it’s too expensive. Others don’t trust the financial institutions that have historically excluded us. And let’s be real—when you’re barely making ends meet, life insurance feels like the last thing on the list.

But here’s the truth: the cost of not having it is far greater. A single policy could mean the difference between leaving your children a financial foundation or leaving them to struggle.

The Turning Point

The good news? Things are changing. Companies like Ethos are making life insurance accessible to everyone. Policies start as low as $7 a month—yes, you read that right—and there’s no medical exam required. Whether you’re managing diabetes, hypertension, or just fear rejection, these policies make coverage possible.

Imagine this: for less than the cost of a meal, you can secure your family’s future. You can break the cycle. You can create a legacy.

Building Financial Literacy

Life insurance is just one part of the solution. We also need to educate ourselves about money—how to save it, grow it, and protect it. Only 28% of African Americans are considered financially literate, compared to 65% of white Americans. That lack of knowledge keeps us from building wealth and makes us vulnerable to predatory practices.

It’s time to change that. It’s time to prioritize financial education in our homes, schools, and communities.

Moving Forward Together

I’ve seen what happens when we don’t plan for the future. I’ve watched families scramble to pay for funerals and children grow up without the resources they deserve. But I’ve also seen what happens when we take control.

We don’t have to stay at the bottom of these statistics. We don’t have to accept the narrative that wealth isn’t for us. By taking small, intentional steps—starting with affordable life insurance—we can change the game for ourselves and our families.

Our ancestors built this country. They endured and persevered so we could stand taller today. Now, it’s our turn to build something lasting.

This is about more than money. This is about reclaiming our power, protecting our families, and creating opportunities for generations to come. The tools are there. The time is now. Let’s make it happen—together.