Life Insurance Gap is One of the Quiet Drivers of Wealth Inequality

The life insurance gap—the difference between coverage families have and what they need—disproportionately affects Black and Hispanic households, undermining generational wealth building. While 57% of Black Americans own life insurance (above the national average), their coverage amounts are often inadequate, and Hispanic ownership has dropped to just 40%, the lowest among tracked ethnic groups. When families lack sufficient coverage after losing a breadwinner, they typically must liquidate assets, drain savings, or accumulate debt to cover immediate expenses and outstanding obligations.