According to a 2022 study by Life Happens and LIMRA, life insurance coverage for Hispanics is lower than for any other race or ethnicity in the United States.
Of the 43.4 million Hispanic American adults, 40% are uninsured and say they need it; 11% are underinsured and say they need more, according to the 2022 Insurance Barometer study by Life Happens and LIMRA, which examined the life insurance needs of American consumers, including 1,400 Hispanic Americans . A total of 22.2 million people have a life insurance deficit, according to the study.
During a recent LinkedIn Live event, two industry leaders shared helpful information about Hispanics owning life insurance and offered some tips to help them get the coverage they need.
The potential to serve the Hispanic market is enormous.
— Faisa Stafford, President and CEO of Life Happens
The potential to serve the Hispanic market is huge, said Faisa Stafford, president and CEO of Life Happens. Forty-one percent of Hispanic Americans have life insurance, the lowest of all races and ethnicities.
Hispanics surveyed cited several reasons for not buying life insurance or for not buying more life insurance. For example, many think it’s too expensive although that’s not necessarily true, said Alison Salka, senior vice president and chief research officer, LIMRA and LOMA. Most people tend to overestimate the cost of life insurance, and Hispanics overestimate the cost five times more than the actual cost, according to research.
Other reasons cited include:
- Have other financial priorities
- I don’t know how much insurance they need or what type to buy
- Didn’t have time to buy it
- Don’t feel they need it
- Don’t like to think about death.
Benefits of life insurance
Salka then offered some benefits of life insurance, including:
- Consumers who own life insurance are more likely than those who don’t to say they feel more secure financially.
- Eighty percent of consumers who have both work and private life insurance said they felt more financially secure.
Life Insurance Awareness Month (LIAM), taking place in September, will provide agents and other stakeholders with a major opportunity to talk about the benefits of life insurance, promote it and build awareness. consumer confidence, Stafford said.
LIAM is a public awareness campaign created 19 years ago by Life Happens to ensure that Americans remember the need for life insurance in their financial plans. The program is now in its 19e year.
This year’s campaign spokesperson is Roselyn Sanchez, a Puerto Rican actress, singer, author, dancer, producer, wife and mother. “We hope his message resonates with you,” Stafford told attendees.
Reaching Hispanic Shoppers
In addition to participating in LIAM, advisors can take note of how Hispanics are buying life insurance as they seek to earn more. When looking to purchase life insurance, many Hispanics often go online, Salka said. However, she added, “the key is to use different types of media to reach them. Go where they are and make your information easy for them to access,” she said.
Other shopping methods used by Hispanics include:
- In person (outside the workplace) through an agent or financial advisor
- Through the workplace
- On the phone
- Complete an application offline and email it to an insurance company or professional
- Complete an application and mail it to an insurance company or professional.
According to research, Hispanic Americans use social media to get information about financial products/services more than other ethnicities (66% of Hispanics vs. 53% of other ethnicities). Platforms like Twitter, Instagram, and TikTok are more popular among Hispanics than other communities.
Ayo Mseka has over 30 years of experience reporting on the financial services industry. She was previously editor of NAIFA’s Advisor Today magazine. Contact her at [email protected].
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