On July 30, Life Happens, a nonprofit organization that encourages Americans to take personal financial responsibility by purchasing life insurance and related products, hosted a webinar for their pro members entitled “Improving Life Insurance Coverage for Black Americans – 5 Myths and Misconceptions.” Speakers Delvin Joyce and Kristen Hall Eskew discussed several life-insurance-based misconceptions and perspectives of the black community that can help agents provide better quality care for all clients.
Below are five common life insurance myths and misconceptions discussed in the webinar.
1. “Life insurance is for final expenses/burials.”
According to Joyce and Eskew, this perspective is common among those with little education on the many benefits of life insurance. Historically, burial costs were collected via donations in an offering plate and many still leave final expenses to donations through services like GoFundMe. Joyce advised agents, “when you go out and are talking to the general public about life insurance, don’t be an order taker.” Instead, be respectful of the client and educate them on the various options and benefits life insurance provides.
2. “I’m not going to make anyone rich. My parents taught me hard work and that’s what I’m going to do for my kids.”
This principle spawns from a focus on survival rather than on legacy, explained Eskew. When faced with this misconception, Joyce discouraged agents from trying to change the client’s mind. Instead, he urged agents to “truly empathize and try to figure out why they have that mindset.” He continued, “empathize, but then show them ways that you can utilize life insurance and put some guardrails up around that life insurance to make sure that your kids are still growing up with that same hard work, determination, and grit.”
3. “I have insurance through my job. That is enough for me.”
“The general feeling is that ‘I worked hard for these benefits; I’m going to use them,’” claimed Eskew. Realistically, the amount of life insurance provided by a workplace is rarely enough to safeguard a family’s income. Eskew and Joyce both pushed for education as a solution to this life insurance myth, and Joyce encouraged agents to “try to supplement the coverage rather than discussing a replacement.”
“Have a conversation and appeal to reason about what that life insurance at work typically means,” he continued.
4. “Life insurance is only for my beneficiaries. I’m dead so why do I care?”
“The idea is that there’re only benefits for the people that you leave behind, but the reality is… there’s so much more that life insurance can do,” explained Joyce. Many consumers are unaware that various life insurance policies offer living benefits or additional riders that allow the insured to utilize some benefits while they are still living. Joyce stated that agents can help clients overcome this misconception by “helping people truly paint a picture of what life looks like for their family when they’re gone.”
5. “$1 million of life insurance is too much.”
$1 million seems like an immeasurable amount to most Americans, yet Joyce explained that this is not as uncommon an amount of coverage as it may seem. When meeting with new clients, Joyce likes to first measure a couple’s needs. After determining how much life insurance they need, Joyce asks how much they think that amount may cost them. The customers usually throw out enormous numbers before Joyce provides an inexpensive premium that will provide his clients with enough coverage to accomplish their goals.
About the Speakers
Delvin Joyce is a National Football League veteran turned financial advisor with Prosperity Wealth Group in Charlotte, NC. Originally from Martinsville, VA, Joyce completed a B.A. in Business Marketing through James Madison University in Harrisonburg, VA, before joining the New York Giants as an undrafted free agent in 2002. In 2006, Joyce joined Prudential Financial Group where he stayed until starting his own business, Prosperity Wealth Group, in 2017.
Kristen Hall Eskew serves as the Recruiting Director at Consolidated Planning, Inc. in Charlotte, NC. Alongside her recruiting responsibilities, Eskew also spearheads Consolidated Planning’s diversity and inclusion efforts. She attended the University of North Carolina at Wilmington, where she earned a B.A. in Communication and Media Studies. Eskew served in various customer service roles before accepting a position with Consolidated Planning in 2015.
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Originally from the snow-capped Rockies, Macee moved to Texas in 2016 to pursue an undergraduate degree in Strategic Communication. She currently serves as a writer and editor for Empower Brokerage, as well as the marketing manager for Preferred Senior Advisors. Macee is also working on her Master’s degree in management, and hopes to inspire others with her passion for telling stories through varied digital and print marketing efforts.
