In the next 20 years, Hispanics are projected to grow three times more than any other ethnic group in the U.S. This, among other aspects, helps to make the demographic a natural market for life insurance.
That’s according to the recent LIMRA study, “Financial Protection for Hispanics,” which points out several characteristics of the Hispanic market, including:
- One third of all Hispanics are third generation or higher in the United States, and speak fluent English.
- Increased levels of acculturation means increased ownership of individual life insurance with the most acculturated Hispanics having similar levels of ownership as the general population.
- Hispanics express multiple financial concerns to a greater degree than the general population. Almost half of Hispanics are very or extremely concerned about dying unexpectedly compared to less than a third of the general population. (See graphs)
- More than half of Hispanic households fall in the middle-income category.
The report notes that opportunities exist for those advisors who pay close attention to cultural sensitivities within the Hispanic market and advisors can refer to financial concerns Hispanics have as a way to introduce a discussion of life insurance.
“While the Hispanic population is complex — they come from many countries — they share a tendency to be young, with large families including children and extended family members,” said Nilufer Ahmed, senior research director, LIMRA Insurance Research. “Their strong emphasis on family makes them a natural market for life insurance.”
Opportunistic news in the dawn of Life Insurance Awareness Month.