Photo: Hispanic family
The 2013 Insurance Barometer Study (IBS), now in its third year, reveals that Hispanics still have a low rate of life insurance ownership (59 percent) when compared to Whites (62 percent) and African Americans (66 percent).
These findings were released today as part of September’s Life Insurance Awareness month by the nonprofits LIFE Foundation and LIMRA.
The 2013 Insurance Barometer Study is designed to increase understanding about consumer attitudes and behaviors regarding a host of insurance and financial planning matters.
Hispanics represent 16.3 percent of the total U.S. population and have a combined purchasing power of more than $1 trillion, yet this demographic feels underserved and uninformed on life insurance ownership and options. Many Hispanics (75 percent) still believe the cost of life insurance is too expensive and almost half (49 percent) remain uneducated about how much/what type of policy to buy.
In addition, Hispanics pointed to multiple financial priorities that take precedence over purchasing life insurance, such as paying for medical expenses (66 percent), reducing credit card debt (57 percent) and paying for a child’s schooling/college (39 percent.) Also, 28 percent noted that they have not purchased life insurance because they’ve yet to be approached by insurance agencies.
Notably, the study indicated that almost half of Hispanics are very or extremely concerned about dying unexpectedly compared to less than a third of the general population. Among those Hispanics that are buying life insurance, the top reasons cited for buying it were to:
- Cover burial and other final expenses (89 percent)
- Help replace the lost income of a wage earner (69 percent)
- Transfer wealth/leave an inheritance (67 percent)
- Pay off a mortgage (57 percent)
- Cover home expenses such as child care, transportation, cooking and cleaning (54 percent)