As Hispanic Heritage Month unfolds, we believe it is important to ensure that the Hispanic community understands and takes full advantage of the financial tools that can help protect the financial well-being of their families.
A key element in this financial toolkit is life insurance. And here’s why: It’s often overlooked. Most people don’t think—or don’t want to—about death or not being there for loved ones.
But it does Happened: 12-year-old Miranda Rivera saw her family fall apart, including financially, after her father, the breadwinner, died. (You can watch her story here). She was one of the recipients of our Life Lessons grant and sums up why life insurance is so important.
“Life insurance can’t bring a parent back, but it can make the path thereafter easier for the bereaved.”
And that’s why it’s so important that we talk openly about it: Hispanics have the lowest life insurance rates of any race or ethnicity. According to a new report, Hispanic Americans: Life Insurance Ownership and Attitudes, a supplement to the 2022 Insurance Barometer Study by Life Happens and LIMRA, six out of 10 people have no insurance at all. But one bright spot is that 51% know they need life insurance, including 40% without coverage and 11% who have one but know they need more.
Affordable financial security
Another piece of good news is that one of the biggest barriers to ownership is that many people, including Hispanics, find life insurance too expensive. Why is this good news? Because 75% of people overestimate the true cost of life insurance. As a general guide, a healthy 30-year-old can get a 20-year term life insurance policy with coverage of $250,000 for just $13 a month.
Getting back to financial security, life insurance appears to be a key element, according to the full barometer To learn. Two-thirds of people who have life insurance report feeling financially secure, compared to less than half of those who don’t. Those who feel most secure have life insurance through both work and a private policy they own (78%). This is important for the Hispanic community, as only 40% say they feel financially secure — 18 points lower than any other demographic.
Of course, financial security is a complex set of factors, but life insurance addresses one important one: income replacement. What happens when the breadwinner dies? For Hispanics, more than a quarter (28%) said they would feel the financial pain in a month or less, and about half said it would be within six months (48%). This is exactly what life insurance is designed for – it replaces lost income and ensures that the family is doing well financially.
Securing the future – and the American dream
Parents want a future that is brighter and better for their children. Take Roberto Loera, for example. He moved to the United States from Mexico to pursue the American Dream and ensure his children could thrive and go to college.
He committed to getting life insurance before his family joined him in Colorado for less than $20 a month. He tragically died of a brain tumor at just 47 years old, but his wife and two sons were doing well financially and college plans were still intact. Roberto had paved the way for his family not only to survive but to thrive. (You can watch his story in English or Spanish.)
Getting started with life insurance is easy. You can learn more about the basics in English or Spanish. Then you can use our online life insurance requirement calculator, which is also available in English or Spanish. When you’re ready, connect with an insurance expert who can help you choose the coverage that fits your needs and budget. If you don’t have one yet, you can use this agent locator.