ARLINGTON, Va., Sept. 7, 2012 /PRNewswire/ -- A recent study indicates that Hispanics, more than the general U.S. population, are concerned about their family's financial well-being and see life insurance as a way to meet those concerns. However, Hispanics are less likely than the general population to own life insurance. In fact, 37 percent of Hispanics admit that they do not have enough. Hispanic families are being left financially vulnerable should the unexpected happen as other financial priorities, as well as misconceptions around life insurance, keep them from getting the coverage they need.
These findings were released today by the nonprofit LIFE Foundation (LIFE) and LIMRA as part of the organizations' 2012 Insurance Barometer Study, an annual survey designed to increase understanding about consumer attitudes and behaviors regarding a host of insurance and financial planning matters.
"In addition to competing financial priorities, Hispanics overestimate the cost of life insurance by more than 10 times the actual cost and think it's too expensive. What many don't realize is that life insurance premiums are at an all-time low, making it more affordable than ever to protect your family's future," said Marvin H. Feldman, CLU, ChFC, RFC, president and CEO of the LIFE Foundation. "September is Life Insurance Awareness Month, and it's an ideal time for Hispanics to focus on understanding the importance of life insurance, dispelling some of their misconceptions and taking the next steps in protecting their families."
With that in mind, LIFE, in partnership with Financial Expert Mike Periu, offer these insights into the most common misconceptions Hispanics have about life insurance:
- Misconception #1: I don't need life insurance right now: Most people can probably deal with the consequences of procrastinating on things like re-painting their bedroom. But are you comfortable living your life knowing that if you died tomorrow your loved ones would find themselves in a dire financial situation? If you need life insurance, buy it today. Tomorrow may be too late.
- Misconception #2: Life insurance is confusing: Life insurance can be confusing, but there are lots of resources to help consumers navigate the process of finding the right policy for their specific needs. The LIFE Foundation's website at www.cosaspasan.org is a great source of unbiased information about life insurance and includes interactive resources to help people get a sense of how much and what kind of life insurance might be right for them. Consumers should also consult with a qualified insurance professional in their community or their HR administrator at work. There's no substitute for expert advice.
- Misconception #3: Life insurance is too expensive: Times may be tough, but a lot of people are still buying electronics and going out to dinner several times a month. Hispanics, like the general population, need to realize that life insurance is a necessity, not a luxury. The other thing to understand is that life insurance has never been more affordable. A healthy 30-year-old can buy a 20-year, $250,000 policy for about 42 cents a day. There are policies to fit every budget, so don't use cost as an excuse to not buy insurance you know you need.
For help getting started in assessing your needs, check out LIFE's insurance needs calculator at www.cosaspasan.org/calculadora.
About Life Insurance Awareness Month
Life Insurance Awareness Month was created by the LIFE Foundation in 2004 in response to growing concern about the large number of Americans who lack adequate life insurance protection. Held each September, Life Insurance Awareness Month is an industry-wide effort involving hundreds of leading companies and thousands of insurance advisors. For more information about Life Insurance Awareness Month and LIFE's plans for the September campaign, contact Matt Derrick at [email protected].
The Life and Health Insurance Foundation for Education (LIFE) was founded in 1994 in response to the public's growing need for information and education on life, health, disability and long-term care insurance. LIFE also seeks to remind people of the important role insurance professionals perform in helping families, businesses and individuals find the insurance solutions that best fit their needs. To learn more about these topics, please visit www.cosaspasan.org or www.lifehappens.org.
SOURCE LIFE Foundation