Consumers who want and need life insurance the most – minorities in lower-income households – are being abandoned by the marketplace, according to a new survey
The survey found 92 percent of African Americans and 82 percent of Hispanics said they believe life insurance is essential, as compared to 72 percent of whites.
However, only 39 percent of African Americans reportedly own a life insurance policy – well under the national average of 47 percent. Forty percent of Hispanics polled said they own life insurance.
The new study was released as the National Association of Insurance Commissioners is discussing the possibility of creating a special sales license that would allow agents to sell only term life insurance as a way to reach this market.
Part of the problem is a lack of diversity among insurance brokers. A May survey by insurance consulting firm A.M. Best found that African Americans now comprise about 14 percent of the U.S. population, but just 2.5 percent of licensed insurance agents are African American.