Though Latinos know they ought to have life insurance to protect their families, fewer of them buy it, compared with other demographic groups
Though Latinos know they ought to have life insurance to protect their families, fewer of them buy it, compared with other demographic groups.
For most people, other financial priorities and the cost of life insurance get in the way of obtaining coverage, according to an online survey of 2,051 people by two industry groups, LIMRA and the Life and Health Insurance Foundation for Education. For Hispanics, the roadblocks are especially significant.
While 70% of the Hispanic consumers polled agree that they need life insurance, only 54% own it. By comparison, 80% of black Americans in the survey acknowledge they need it and 76% own it, and 67% of whites agree they need life insurance and 62% own it.
Fully 92% of polled Latinos said that they had other priorities and 83% said that coverage is too expensive. Nearly three-quarters of the Hispanics polled said they don't know how much or what kind of coverage to buy, and 58% said they have never been approached by anyone about buying insurance. Of Hispanics who have life insurance coverage, more than one in five (22%) think that their coverage is inadequate.
Sixty-nine percent of the Hispanics polled said that the main reason to purchase coverage is love and concern for family members. Other reasons included covering funeral expenses, replacing lost income and leaving an inheritance.
“Life insurance has never been as easy or inexpensive to buy, yet millions continue to put off getting coverage that they say they need,” said Marvin H. Feldman, president and chief executive of the LIFE foundation.
The study also revealed that while most consumers still prefer to buy coverage from an agent, the first stop for researching products is the Internet. Some 23% of Hispanics said they would prefer to buy a policy directly from a carrier online.
