We believe it is important that Hispanic Heritage Month takes place. This means that we want to make sure that everyone in the Hispanic community knows and uses the financial tools available to help them and their families.
Life Insurance is a key component of that financial toolkit. Here’s why it’s so often overlooked. People don’t want to think about death and being there for loved ones.
It happens: Miranda Rivera, 12, saw the fallout of her family, including financial, after her father died. You can see her story here. She was one our Life Lessons Scholarship recipients and sums up why life insurance is so important.
Life insurance cannot bring back a parent, but it can make it easier for the family to move forward.
Here’s why it is important that we discuss it openly: Hispanics have one of the lowest life insurance ownership rates. According to a new report ” Hispanic Americans : Life Insurance Ownership & Attitudes,” which is a supplement to the 2022 insurance barometer study by LIMRA and Life Happens , six in ten have no coverage. There is a silver lining: 51% of those surveyed know they need life insurance. This includes 40% who don’t have any coverage and 11% who do but need more.
Affordable Financial Security
Another good news is the fact that life insurance can be expensive for many, even Hispanics. This is why it’s good news. 75% of people underestimate the true price of life insurance. A healthy 30-year-old can obtain a 20-year, $250,000-insured term life insurance policy for $13 per month.
Financial security is back: According to the complete Barometer Study, life insurance appears to be a key component. Two-thirds say they feel financially secure if they have life insurance, while less than half of those without it claim to feel that way. 78% of those who feel the most secure have both life insurance through their employer and an individual policy (78%). This is an important point for the Hispanic community, since only 40% of Hispanics feel financially secure. That’s 18 percentage points lower than other groups.
Financial security is complex. life insurance covers one important factor: income replacement. What would happen if the breadwinner died? Hispanics surveyed by the National Association of Hispanics (28%) stated that they would feel financial pain within a month to six months, while only half (48%) claimed it would take longer. This is precisely what life insurance was designed to do–replace lost income and ensure that the family is financially stable.
The Future is Secured – and the American Dream
Parents want a brighter future for their children. Roberto Loera is one example. Roberto Loera immigrated from Mexico to the U.S. to live the American Dream, and to ensure that his children would be successful and able to attend college.
He committed to getting life insurance before his family moved to Colorado. It cost him less than $20 per month. At 47 years old, he succumbed to a brain tumour. His wife and two sons were financially sound, and he had plans for college. Roberto had created the foundation for his family’s ability to not only survive but also thrive. (You can view his story in English and Spanish.
It is simple to get started in your journey towards life insurance ownership. Learn more in English and Spanish. Then, you can use our online Life Insurance Needs Calculator, also available in English or Spanish. Once you are ready, contact an insurance professional to help you select the coverage that best suits your needs and budget. You can find an agent locator if you don’t yet have one.