Supplemental Report: 2022 Insurance Barometer Study
The Life Insurance “Need Gap” for Hispanic Americans
Owning life insurance gives people financial peace of mind. In fact, among those with dependents who have life insurance, 68% say they feel financially secure, compared with less than half (47%) of those with no coverage.
Why, then, do so many not have the coverage they need? Only half of adult Americans say they have life insurance, and that number is even more pronounced in the Hispanic community, where just 42% have coverage. This represents a decline of 9 points for Hispanic Americans compared to last year.
A new report, “Hispanic Americans: Life Insurance Ownership and Attitudes,” gives insight into this disparity and how this gap can be overcome. This report is a supplement to the 2022 Insurance Barometer Study, by Life Happens and LIMRA.
The need for life insurance
More than half of Hispanic Americans (51%) say they have a life insurance need:
- 40% are uninsured and say they need life insurance
- 11% have some life insurance and say they need more
- This suggests 22 million Hispanics in the U.S. have a need for life insurance (based on U.S. Census data)
Why do Hispanic Americans want life insurance?
The most universal reason to own life insurance—across race and ethnicity—is to cover burial and final expenses, and Hispanic Americans are no exception.
- 7 in 10 Hispanic Americans cite this as the major reason they own life insurance (69%)
- The next two “major” reasons for owning it are to replace lost wages (41%) and to leave an inheritance (39%)
What’s stopping them from getting coverage?
Hispanic Americans say that cost (38%) and competing financial priorities (38%) are the top reasons that they don’t have life insurance or more of it.
On average, Hispanic Americans are feeling more financial strain than other Americans: They report more concern about a wider range of financial issues than other races and ethnicities. Cost may be a perceived barrier to ownership, however, as 75% of people overestimate the true cost of life insurance.
Engaging and educating about life insurance
Hispanic Americans are open to advice and education. More than a quarter (26%) say they are unsure of how much and what type of life insurance to buy. In addition,
- 27% of Hispanic Americans are looking for a financial advisor, vs. 20% of the general population
- They use social media for financial info more than other races and ethnicities (66% of Hispanic Americans vs. 53% of the general population)
- They prefer to use newer social-media platforms like Instagram and TikTok for financial knowledge
The full 2022 Insurance Barometer Study and this supplemental report, “Hispanic Americans: Life Insurance Ownership and Attitudes,” are available to Life Happens member companies and can be accessed here. If you have issues accessing it, please contact Erik at email@example.com. For media inquiries, contact firstname.lastname@example.org.