The Hispanic market is large (at 52 million, it already outnumbers the population of Canada) and growing larger (by 2030, it could tally 79 million). It is also young: According to recent LIMRA research, 75 percent of Hispanics in the U.S. are under the age of 45. This emerging market has in many ways already emerged, and it is a valuable niche for advisors looking to grow their businesses. Read on for five points to direct your sales pitch.
1. The cost of health care is their No. 1 concern.
In National Underwriter’s recent Multicultural Markets Survey, we asked respondents about the concerns their Hispanic clients shared with them most often. Among those who actively serve Hispanic clients, a whopping 57 percent said health care costs were the No. 1 concern. With health insurance exchanges on the near horizon and a number of pricing unknowns ahead, the need for solid financial planning to protect against crippling health care costs has never been greater.
2. Providing security for their family is a key motivator to buy insurance.
A recent LIMRA survey notes that more than half of Hispanic households consist of at least four members, compared with about a third of all U.S. households. Concern for family is paramount in Hispanic culture, as our survey respondents noted: Providing security for family in the event of death was the second most cited concern that clients shared with their advisors (55 percent).
3. Hispanic prospects want life insurance.
Perhaps because of the importance of family, Hispanic prospects want life insurance: seventy-five percent of survey respondents said it was the product they were most often asked about. LIMRA research shows that nearly half of Hispanic clients are extremely/very concerned about dying without adequate financial protection, compared to about one-third of the general population.
4. Long-term care insurance is not top of mind.
Long-term care insurance is a product that could use a PR boost among Hispanic prospects. A mere eleven percent of survey respondents identified LTCI as a product they are often asked about — surprising given the widespread concern over health care costs. One respondent explains the awareness gap this way: “Many people I work with still don’t see the need for long-term care. They have the romantic notion that they will be able to live as they have for generations, as one big family. But, families who come to America often are scattered and have their own lives and don’t understand the impact of a long-term care situation to them and the ones they love and want to take care of. It’s a crisis coming for our country.”
5. Product affordability is a challenge.
More than half (57 percent) of Hispanic families fall in the middle-income category, according to LIMRA research — but product affordability is still a concern. One explanation for this may be that Hispanic clients simply have other financial priorities. Rubin Ruiz, CEO, The Ruiz Financial Group, says that, like much of the general population, his clients view saving as a secondary concern: “Hispanics have been taught that a career and college diploma are the most important parts for their future, so income becomes dominant, saving or investing, secondary, or not on the radar.”