At a certain point in life, it becomes incumbent upon the individual to ensure themselves, and their families, against future risk. The fact that we live in dangerous times is evident all around us, but perhaps an overexposure to TSA and other security apparatuses have quietly distorted the
reality of what truly ails the average American. The facts, however, bear mentioning: even today, the leading causes of death in the US are medical, such as heart related or respiratory complications.
In terms of preparedness for this horrible eventuality, Life Insurance can be a great asset, ridding your family of at least financial strain in a time of great hardship. However, as an ethnic group, while Hispanics form a large percentage of the US population, they also display very low penetration of life insurance, with less than 54% insured. This compares quite unfavourably with the 76% life insurance spread amongst other ethnic groups, such as African-Americans.
What this translates to is that nearly half of a rapidly growing sub-group of Americans most likely find themselves with inadequate economic means after the death of a partner.
With the recession and economic hardships, already families require all the income they can procure. The death of an individual then can result in a substantial drop in earnings, immediately precipitating crisis. And even though a vast majority of Hispanics affirm that life insurance is a valuable tool for managing or even solving this crisis, nearly half of them don’t possess it.
This is perhaps a result of a misalignment of policy and structural inadequacies, rather than a cultural more. Our life insurance for Hispanics, however, is a result of careful study and is calibrated precisely to counter these structural factors to ensure much greater depth and spread, and eventual satisfaction.
The first myth and most prevalent myth that our sales team encounters is that life insurance places far too much economic strain to be financially viable. This is, of course, patently untrue. The unique fact of life insurance policies is that they can be heavily customized, calibrated to fit
precisely an individual’s economic reality. In most cases, whatever income you can afford to siphon off every month, is exactly what you can design your life insurance to take!
The second problem that we encounter is that while Hispanics rank the highest amongst all ethnic groups in wanting to know exactly what they are purchasing, often there may exist a certain language barrier, where a Hispanic individual not very comfortable in English, is being informed about policies by a salesperson not too conversant in Spanish.
The third problem is that Hispanics underestimate how much they make: not only are the Hispanics amongst the fastest growing in terms of per capita income, with over 60% Hispanics holding blue-collar jobs, they are well over the national average. Moreover, they underestimate the accumulation power of a couple of hundred a month over the period of decades.
This is why some of the fastest growth in life insurance sales can now be found within this community. Despite a low spread, the community not only has the desire for life insurance, but also the means. With the alignment of our life insurance policies to the needs of this community, we are hopeful about surmounting these barriers and drastically increasing the adoption of life insurance within the community.