Life Insurance: Myths, facts and why It matters for black adults 40 years of age and older.

Life insurance is often misunderstood, overlooked, or delayed, especially in communities where financial planning has historically been reactive rather than proactive. For Black adults over 40, life insurance isn’t just about preparing for the inevitable. It’s about protecting our families, building legacy, and creating financial options while we’re still living.

Yet myths persist. Many of us believe it’s too expensive, too complicated, or only useful after death. These misconceptions can prevent us from accessing one of the most powerful tools for generational wealth and financial stability.

Let’s unpack the most common myths and explore the real value life insurance can offer, especially for those of us committed to intentional living and legacy building.

Myth 1: “Life Insurance Costs Too Much”

Fact: Life insurance is more affordable than most people think.

A healthy 40-year-old male can get a term policy for around $164 per year. Even for older adults, term life insurance remains one of the most cost-effective ways to secure financial protection for a set period.

Term policies are designed to provide coverage for a specific number of years, often 10, 20, or 30. They’re ideal for covering major life responsibilities like raising children, paying off a mortgage, or protecting income during working years.

Permanent life insurance, while more expensive, offers additional benefits like cash value growth, optional chronic illness riders, and long-term financial flexibility. These policies can serve as a financial asset, offering liquidity and tax advantages over time.

And if you already have a policy, it may be worth reviewing. Newer options could offer better coverage, more features, or lower premiums. A financial professional can help assess whether your current policy still aligns with your goals.

Myth 2: “It’s Too Much of a Hassle to Buy”

Fact: The process is easier than ever.

Gone are the days of stacks of paperwork and weeks of waiting. Today’s applications are electronic, streamlined, and often completed with the help of a financial professional—or even online. Underwriting interviews can be done at your own pace on a laptop, tablet, or phone.

If you’re healthy, you may not need a medical exam at all. Many insurers now use digital health records and simplified questionnaires to assess eligibility. This means faster approvals and fewer barriers.

And, if you’ve been declined in the past due to health issues, don’t assume you’re still ineligible. More people are insurable now than ever before, thanks to updated underwriting guidelines and broader access to data.

Myth 3: “Life Insurance Only Helps After I Die”

Fact: Many policies offer living benefits.

Permanent life insurance can build tax-deferred cash value, which you can borrow against or withdraw tax-free. That money can be used for anything, college tuition, a down payment, a wedding, or even to supplement retirement income.

Some policies also include chronic illness riders, allowing you to access part of your death benefit if you become seriously ill. This can provide critical financial support when you need it most—without having to liquidate other assets or rely on savings.

These living benefits make life insurance more than just a safety net. It becomes a flexible financial tool that adapts to your needs over time.

Myth 4: “I Don’t Need to Make My Family Rich”

Fact: It’s not about wealth, it’s about protection.

If you were to pass away unexpectedly, your family could face immediate financial strain. Life insurance helps cover housing, food, education, and other essentials that don’t disappear when you do.

It can also be a strategic tool for estate planning. While the federal estate tax exemption is currently $13.99 million, it’s scheduled to drop to $5 million (adjusted for inflation) in 2026. If your assets grow over time, life insurance can help offset future tax burdens and preserve your legacy.

And for families with dependents who have special needs, life insurance can provide lifelong financial support. It’s not about making anyone rich it’s about ensuring continuity, dignity, and opportunity.

Workplace Coverage Isn’t Enough

Many rely solely on employer-provided life insurance, but the median coverage is just $20,000 or one year’s salary. That may cover funeral costs—but what happens in year two?

Employer policies often aren’t portable, meaning you lose coverage if you change jobs or retire. A personal policy ensures continuity and control, tailored to your family’s unique needs.

If you’re approaching retirement or considering a career change, now is the time to secure independent coverage that travels with you.

Why does this matters for black adults 40 and over?

We know that systemic barriers have long impacted Black wealth-building. From redlining to employment discrimination, our communities have faced structural challenges that limit access to financial tools and education. Life insurance is one tool we can use to shift that narrative—from reactive planning to proactive legacy creation.

Whether you’re raising children, caring for aging parents, or planning for retirement, life insurance offers peace of mind and financial leverage. It’s not just about death—it’s about life, choice, and generational impact.

It’s also about modeling financial responsibility for younger generations. When we normalize conversations about insurance, estate planning, and legacy, we empower our families to think long-term and build with intention.

Berrinal Chery - [email protected]

33 35th Street Suite A410 Brooklyn, NY 11232 (718) 688-3501