You and Your Money
Many Hispanic Families Leaving Themselves Financially Unprotected Should the Unexpected Happen
Study indicates that while the majority of Hispanics believe they personally need life insurance, other financial priorities are winning out
A recent study indicates that Hispanics, more than the general U.S. population, are concerned about their family’s financial well-being and see life insurance as a way to meet those concerns. However, Hispanics are less likely than the general population to own life insurance. In fact, 37 percent of Hispanics admit that they do not have enough. Hispanic families are being left financially vulnerable should the unexpected happen as other financial priorities, as well as misconceptions around life insurance, keep them from getting the coverage they need.
These findings were released today by the nonprofit LIFE Foundation (LIFE) and LIMRA as part of the organizations’ 2012 Insurance Barometer Study, an annual survey designed to increase understanding about consumer attitudes and behaviors regarding a host of insurance and financial planning matters.
“In addition to competing financial priorities, Hispanics overestimate the cost of life insurance by more than 10 times the actual cost and think it’s too expensive. What many don’t realize is that life insurance premiums are at an all-time low, making it more affordable than ever to protect your family’s future,” said Marvin H. Feldman, CLU, ChFC, RFC, president and CEO of the LIFE Foundation. “September is Life Insurance Awareness Month, and it’s an ideal time for Hispanics to focus on understanding the importance of life insurance, dispelling some of their misconceptions and taking the next steps in protecting their families.”
With that in mind, LIFE, in partnership with Financial Expert Mike Periu, offer these insights into the most common misconceptions Hispanics have about life insurance:
-Misconception #1: I don’t need life insurance right now: Most people can probably deal with the consequences of procrastinating on things like re-painting their bedroom. But are you comfortable living your life knowing that if you died tomorrow your loved ones would find themselves in a dire financial situation? If you need life insurance, buy it today. Tomorrow may be too late.
-Misconception #2: Life insurance is confusing: Life insurance can be confusing, but there are lots of resources to help consumers navigate the process of finding the right policy for their specific needs. The LIFE Foundation’s website at www.cosaspasan.org is a great source of unbiased information about life insurance and includes interactive resources to help people get a sense of how much and what kind of life insurance might be right for them. Consumers should also consult with a qualified insurance professional in their community or their HR administrator at work. There’s no substitute for expert advice.
-Misconception #3: Life insurance is too expensive: Times may be tough, but a lot of people are still buying electronics and going out to dinner several times a month. Hispanics, like the general population, need to realize that life insurance is a necessity, not a luxury. The other thing to understand is that life insurance has never been more affordable. A healthy 30-year-old can buy a 20-year, $250,000 policy for about 42 cents a day. There are policies to fit every budget, so don’t use cost as an excuse to not buy insurance you know you need.
For help getting started in assessing your needs, check out LIFE’s insurance needs calculator at www.cosaspasan.org/calculadora.