Life insurance and the Hispanic American community
Hispanic Heritage Month runs from September 15 through October 15!
While Hispanic Heritage Month celebrates the generations of Hispanic and Latino Americans who enrich our nation and society, last month’s Life Insurance Awareness Month educates people about life insurance and helps them make the right coverage choices.
With both celebrations overlapping in September, we’re taking this opportunity to explore the role of life insurance in the Hispanic community! Keep reading to learn about the need for life insurance in the Hispanic community, the top reasons why Hispanic Americans own life insurance, and information about affordable life insurance options for Hispanic Americans!
The need for life insurance in the Hispanic community
According to Life Happens and LIMRA, more than half of Hispanic Americans (51%) say they have a life insurance need, including 40% who are uninsured and say they need life insurance and 11% who have some life insurance, but say they need more.1
This desire to own life insurance isn’t surprising when you think about the strong family values found in the Hispanic community. Close-knit Hispanic families feel a moral responsibility to their family members, with 86% of Hispanics saying that “family takes care of each other no matter what,” and 87% saying it’s important to give money to family members in need.1 Life insurance is a tool that can help Hispanic Americans take care of their families and protect their financial futures.
Top 3 reasons why Hispanic Americans own life insurance
When asked about why they own life insurance, here are the top three reasons given by Hispanic Americans:
1. To cover burial and final expenses.
Seven in 10 Hispanic Americans say that the major reason they own life insurance is to cover burial and final expenses.1 With the median cost of a funeral with viewing and burial costing $7,848 in 2023,5 life insurance is an effective way to plan ahead for these expenses.
2. To replace lost wages.
Just over 40% of Hispanic Americans say they own life insurance to replace lost wages.1 When a primary wage earner passes away, families often have to make quick, dramatic decisions at a time when they’re still grieving. If the family can’t afford their home and lifestyle without the lost income, they may need to quickly find more affordable housing or a new job. Life insurance can help give a family time and options—so they can adjust and make rational decisions in their own time.
3. To leave an inheritance.
Finally, nearly 40% of Hispanic Americans say that they own life insurance because they want to leave an inheritance.1 Life insurance can do more than protect loved ones from financial stress. It can also help Hispanic Americans build generational wealth.
Affordable life insurance options for Hispanic Americans
Life Happens and LIMRA report that 38% of Hispanic Americans say that cost and competing financial priorities are the top reasons that they don’t have life insurance or more of it.1
With wages not keeping up with the rising cost of living, we understand that cost is an important factor for anyone! However, life insurance is more affordable than most people think. In fact, more than half of Americans overestimate the cost of life insurance by as much as threefold!3
The reality is, there are many affordable life insurance options available. Term life insurance tends to be the most affordable type of coverage available, with an average policy costing just $26 a month, according to Nerdwallet.4
Read here to learn more about life insurance in the Hispanic community!
Washington National is here for you!
Washington National honors the history, heritage and accomplishments of Hispanic Americans. We also strive to raise awareness about the importance of life insurance among all individuals. If you have questions about life insurance—or you’re ready to talk to one of our agents about a policy—contact us here.
1Life Happens, The Life Insurance “Need Gap” for Hispanic Americans, https://lifehappens.org/research/the-life-insurance-need-gap-for-hispanic-americans/, September 2022.
2ViacomCBS, Family Togetherness Is a Core Value for US Hispanics, https://insights.viacomcbs.com/post/family-togetherness-is-a-core-value-for-us-hispanics/, February 2020.
3LIMRA, Top Misconceptions About Life Insurance, https://www.limra.com/siteassets/newsroom/help-protect-our-families/2022/sept/hpof-misconceptions-flyer-redesign_infographic_final.pdf, 2022.
4Nerdwallet, Average Life Insurance Rates for May 2023, https://www.nerdwallet.com/article/insurance/average-life-insurance-rates, May 2023.
5USA Today, How much does a funeral cost?, https://www.usatoday.com/money/blueprint/life-insurance/how-much-does-a-funeral-cost/, June 2023.