Hispanics continue to have a lower rate of life insurance ownership than other groups, according to the "2013 Insurance Barometer Study" released by the LIFE Foundation and LIMRA.
Among Hispanic adults, 59 percent have life insurance, compared to 62 percent of whites and 66 percent of African Americans.
Three-quarters of Hispanics believe life insurance is too expensive, and 49 percent are uninformed about how much or what type of policy to buy, the study found. Other financial priorities take precedence over purchasing life insurance, including paying medical bills, reducing credit card debt and paying for a child's education.
Yet almost half of Hispanics say they are very or extremely concerned about dying unexpectedly compared to less than a third of the general population. Among Hispanics who are buying life insurance, the top reasons cited were:
- Cover burial and other final expenses (89 percent)
- Help replace the lost income of a wage earner (69 percent)
- Transfer wealth or leave an inheritance (67 percent)
- Pay off a mortgage (57 percent)
- Cover home expenses such as child care, transportation, cooking and cleaning (54 percent)
"It's important that agents and brokers tackle misconceptions about life insurance being too expensive and find the right approach on how to connect with Hispanics," Marvin Feldman, president and CEO of the LIFE Foundation, said in a press statement. "With a preoccupying 46 percent expressing a high mistrust in insurance companies, our focus must be on building trust, education, and bridging cultural differences."