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.