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August 06, 2013 at 01:42 PM
Life insurance can do some pretty amazing things. What other product can help build more security into life’s uncertainty and provide loved ones time to grieve when a death occurs, funds to pay off debts and the ability to leave a legacy to surviving family members? But we know that for all of this to occur, you need to own life insurance.
See also: The power of the life insurance pro
Today, there are 11 million fewer American households covered by life insurance than there were six years ago. A recent LIMRA survey on consumer understanding of life insurance discovered that many Americans know little more than the basics. On average, survey participants were only able to answer four out of 10 questions about life insurance correctly. The statistics are even more disheartening for multicultural markets.
One of the best ways to penetrate a market is to hire, train and educate professionals who are part of those markets. Conrad Coke, associate general agent at South Florida-based Cambridge Financial Partners LLC, says that the firm’s diverse selling force is hugely helpful in gaining market share of a multicultural clientele.
“Many of our financial associates and clients are first and second generation immigrants — and proud American citizens. As a group, we believe in the American dream and what that means to families. We understand the challenges our clients face in moving to a new area, let alone a new country, to assimilate and provide for their families,” he says. “Our clients are our neighbors, and we spend time together. People do business with people whom they like and trust.”
The Hispanic market is one group that needs the outreach. With more than $1 trillion in disposable income, Hispanics are an economic powerhouse. They comprise more than 16 percent of the total U.S. population and accounted for 56 percent of all population growth from 2000 to 2010.
See our infographic: The Hispanic market: Top 7 metro areas
Data shows Hispanics are the most underserved by the insurance industry. Thirty-four percent of Hispanics have life insurance compared to 62 percent of the general population. In addition, they are much less likely to have met with a financial professional.
One of the biggest challenges is that many Hispanics haven’t been exposed to the benefits of insurance or planning financially for the future. It’s not prevalent in their culture — yet. Initially at least, this makes it hard for Hispanic prospects to comprehend exactly what insurance can do for them, their family and their future. However, Hispanics are a receptive audience to insurance if approached properly.
