Black-Owned Life Insurance Companies
Life insurance is a legal contract between a life insurance policyholder and an insurer. 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 or 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. The rest of the blog expands on insurance policies; it will arm yourself with useful knowledge.
- Black owned life insurance companies are owned and operated by Blacks
- Term Life Insurance and Permanent Life Insurance are the common types of life insurance policies
- Life insurance covers are active till the day the policyholder dies, surrenders the policy, or stops paying premium
The contents of this article are for educational purposes only. They are not intended to be a source of professional financial advice. You will find experts on financial planning and financial management here. More on disclaimers here.
Types of Life Insurance
Depending on your needs and preferences, there are different types of life insurance catered for that. 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:
This type of insurance allows policyholders to exchange a term policy for a permanent plan.
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 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.
Things to Note When Taking Up a Life Insurance Cover
It's 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.
Black Owned Life Insurance Firms
These are leading Black-owned insurance companies:
1. North Carolina Mutual Life Insurance Company
The North Carolina Mutual Life Insurance Company was founded in 1898 and then incorporated on February 28th, 1899. The firm was established with the intention of providing services to the underserved communities by John C. Merrick who was born into slavery and grew up to become a Black entrepreneur. It was the first Black-owned insurance company in the state and the largest in the nation at the time.
Among the company offerings are life insurance, health, disability and annuity products to individuals and groups. Currently, the company services over 200,000 individual policyholders. In addition, there are over 250,000 people covered under their group policies nationwide.
2. Atlanta Life Insurance Company
Atlanta Life Insurance company was founded over 100 years ago by Alonzo Franklin Herndon, who was a former slave. 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 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.
3. 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 until 2006 when it was ordered into Rehabilitation. Its wholly owned subsidiary, Universal Life Insurance Company, was ordered into Rehabilitation on April 24, 2009. The company is currently located in Birmingham, Alabama. Among the insurance services offered by the company include life insurance, accident and health covers.
4. 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.
5. Williams-Progressive Life Insurance Co.
Williams Progressive Life & Accident Insurance Inc is part of the Insurance Carriers industry and is located in Opelousas, LA, USA. It is a Black-owned insurance company that was founded in 1932 by M.D.Williams and his wife Bernadine Williams. The company has grown to become the 4th largest Black-0wned insurance company in the United States.
6. Jackson Insurance and Financial Services
Jackson Insurance and Financial Services is a Black-owned life insurance company founded by Tonya M. Jackson. The company is based in Houston, Texas and has been providing life insurance policies and financial services to individuals and businesses for over 20 years.
Jackson Insurance and Financial Services offers a range of policies, including term life insurance, whole life insurance, and universal life insurance. The company prides itself on its commitment to providing personalized services and tailoring policies to meet the unique needs of each client.
Additionally, Jackson Insurance and Financial Services is actively involved in supporting local organizations and initiatives that empower and uplift the African American community.
Personalized Insurance Packages
Bay Street Capital Holdings
Bay Street Capital Holdings is an independent company located in Palo Alto, CA that offers financial planning services, wealth management, and investment advisory services. Their strategy emphasizes managing total risk and volatility while sustaining and increasing total assets and income, rather than solely focusing on maximizing returns.
William Huston, the founder of Bay Street, established the company after working for 13 years with the $650B Thrift Savings Plan, the largest retirement plan in the United States. He was recognized as one of Investopedia's Top 100 Financial Advisors for 2021. In California, only two out of nineteen firms recognized by Investopedia as Top 100 Financial Advisors are black-owned.
Ekenna Anya-Gafu CFP, AAMS, a financial advisor based in Scottsdale, Arizona, has been recognized as one of the Best Financial Advisors for his responsiveness, friendliness, helpfulness, and attention to detail. Bay Street was established to support diverse and emerging fund managers and entrepreneurs. In 2021, the company was chosen as a finalist in the Asset Manager for Corporate Social Responsibility (CSR) category among over 900 companies across the United States.
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