Black-owned Life Insurance Companies

William Huston, AIF®, AIFA®

by in Published on September 04, 2021

Share this post in:

Black-Owned Life Insurance Companies

Life insurance is a legal contract between an insurer and a life insurance policyholder. The terms of the agreement usually guarantee that in the case of the death of the policy owner, the insurer will pay the legal beneficiary of the policyholder a sum of money in exchange for the premiums paid by the policyholder during their lifetime. In some instances, depending on the nature of the contract, terminal/ critical illnesses may also prompt payment to the policyholder by the insurer.

Under life insurance, the policyholder usually pays a regular premium or as a lump sum every so often, depending on the terms agreed in the contract.

With the COVID-19 pandemic, many people have been more keen to take up life insurance policies as a way of protecting their family's financial future.

The best life insurance for you is usually dependent on your budget, your financial goals and the value that you want to build up within your policy.

Things to Note When Taking up a Life Insurance Cover

  • It is a legally binding contract.
  • For the life insurance policy to remain active, the policyholder must pay a single premium upfront based on the agreed timelines or pay a lump sum as agreed with the life insurance company.
  • It is mandatory for the life insurance policyholder to accurately disclose their past and current health conditions and also any high-risk activities that they may be involved in.
  • In the case of death of the life insurance policyholder, the named beneficiary/ beneficiaries are the ones to receive the policy's face value or death benefit.
  • Permanent life insurance policy remains active till the day the policyholder dies, surrenders the policy or stops paying premiums.

Types of Life Insurance

Depending on your needs and preferences, there are different types of life insurance that you can take up. All types of life insurance fall under two main categories:

Term Life Insurance

This type of insurance typically lasts for a number of years and then ends. The most common terms are 10, 15, 20, 25 or 30 years. They are often more affordable and meet the needs of the policy holders. On the flip side, if the policy holder outlives their policy, their beneficiaries don't receive a payout.

Some common types of term life insurance include:

Convertible Term

This type of insurance allows policyholders to exchange a term policy for a permanent plan.

Decreasing Term

It is a renewable term life insurance whereby the premium stays the same each year but the coverage of the policy decreases over the life of the policy at a predetermined rate.

Renewable Term

Renewable term plans give policyholders the right to renew their policies for a set duration once the term ends, regardless of the state of their health. It is important to note that each new term, the premiums increase.

Permanent Life Insurance

This type of insurance is valid for the insured's whole life unless the policyholder stops paying the premiums or surrenders the policy. Typically, it's a bit more costly as compared to term life insurance.

Some common types of permanent life insurance include:

Whole life insurance

This is a type of permanent life insurance that is based on estimates of expenses long term, interest and mortality. Such policies accumulate cash value that can be used as a source for loans or to pay the policy premiums.

Universal life insurance

Universal life insurance has a cash value component that earns interest. Over time, the premiums can be adjusted and designed with an increasing death benefit.

Variable life insurance

This type of insurance allows the policyholder to invest and allocate the value of the cash policy in a separate account that's available. The premiums are flexible and can be designed with a level death benefit or an increasing death benefit.

If you're looking to buy a life insurance policy with a Black-owned insurance company, here are the top Black insurance companies to consider.

Black Owned Life Insurance Companies

Atlanta Life Insurance Company

Atlanta Life Insurance Company

Atlanta Life Insurance company was founded over 100 years ago by Alonzo Franklin Herndon, who was born into slavery. Starting off at a barbershop, Alonzo transitioned into the insurance industry after his barbershop was destroyed during the 1905 Atlanta race riots. He not only grew not only to become an original member of the NAACP, but also Georgia’s first black millionaire.

Among the insurance services offered by Atlanta Life Insurance company include personal insurance, commercial insurance and group insurance.

Booker T. Washington Insurance Company, Inc.

Booker T. Washington Insurance Company, Inc.

The Booker T. Washington Insurance Company, Inc. was founded in 1923 by Dr. A.G. Gaston, and then incorporated in 1931.

The company was among the 10 largest black-owned life insurance companies in the country. The company is currently located in Birmingham, Alabama.

Among the insurance services offered by the company include life insurance, accident and health covers.

Golden State Mutual Life Insurance Company

Golden State Mutual Life Insurance Company

The Golden State Mutual Life Insurance Company was founded by William Nickerson Jr., George A. Beavers, Jr., and Norman O. Houston on July 23rd 1925.

Their mission was to provide African Americans with employment opportunities, as well as insurance services. For eighty-four years, Golden State Mutual grew to become one of the largest black-owned insurance companies. By the 1980s, Golden State Mutual was struggling to maintain profitability because of the economic decline. As a result, Golden State Mutual's policies were taken over by IA American Life Insurance Company in 2009.

Some of the services offered by IA American Life Insurance Company include life insurance, accident, and supplemental health insurance.

North Carolina Mutual Life Insurance Company

North Carolina Mutual Life Insurance

The North Carolina Mutual Life Insurance Company was founded in 1898 by John C. Merrick who was a Black entrepreneur, born into slavery. It was the first Black-owned insurance company in the state and the largest in the nation at the time. North Carolina Mutual Life Insurance company was founded with the intention of providing services to the underserved communities.

Currently, the company services over 200,000 individual policyholders. In addition, there are over 250,000 people covered under their group policies nationwide.

Among the company offerings are life insurance, health, disability and annuity products to individuals and groups.

Williams-Progressive Life Insurance Co.

Williams Progressive Life & Accident Insurance Inc

Williams-Progressive Life Co. Accident Insurance was founded in 1947 and is located in Opelousas, LA, USA.

It is part of the Insurance Carriers industry the business is listed in these categories: Life insurance, direct life insurance carriers and insurance life.

Bay Street Capital Holdings

Bay Street Capital Holdings is a Black-owned, independent investment advisory, wealth management, and financial planning firm headquartered in Palo Alto, CA. They manage portfolios with the goal of maintaining and increasing total assets and income with a high priority on managing total risk and volatility. Although many advisors may focus on maximizing returns, they place a higher priority on managing total risk and volatility.

Our founder, William Huston founded Bay Street after 13 years of supporting the United States' largest retirement plan ($650B) Thrift Savings Plan. He is recognized as Investopedia’s Top 100 Financial Advisors for 2022. In California, Bay Street Capital Holdings is the only Black-owned firm out of the twenty firms that received this recognition. In Scottsdale Arizona, Ekenna Anya-Gafu CFP, AAMS is recognized among the Best Financial Advisors for his responsiveness, friendliness, helpfulness, and detail. Bay Street was founded to advocate for diverse and emerging fund managers and entrepreneurs. In 2021, Bay Street was selected as a finalist out of over 900 firms across the US in the category of Asset Manager for Corporate Social Responsibility (CSR).

Sources

https://www.investopedia.com/terms/l/lifeinsurance.asp

https://www.nerdwallet.com/article/insurance/types-of-life-insurance

https://www.dfs.ny.gov/consumers/life_insurance/types_of_policies

https://www.forbes.com/advisor/life-insurance/best-life-insurance-companies/

https://atlantalife.com/

https://www.ncmutuallife.com/

https://www.investopedia.com/terms/l/lifeinsurance.asp

https://www.nolhga.com/companies/public/main.cfm/NAICCode/61468/GAID/100

William Huston, AIF®, AIFA®
More posts by William Huston, AIF®, AIFA®

Contact us to discuss how we can help empower you on your investment journey.

Please tell us about yourself, and our team will contact you.