Top 10 facts about the Hispanic market and life insurance
September 18, 2013 4:44 PM
1. Population is growing
With a population of 52 million in the United States, Hispanics outnumber the population of Canada. By 2030 they could number 79 million, nearly one quarter of the U.S. population, according to census data.
2. Population is younger
The median age is 27 years old, 10 years younger than the general populations median age of 37 years. Seventy five percent of Hispanics are under 45 years old.
3. Population is complex
Hispanics come from many countries, all with different cultures and financial attitudes. Acculturation to life in the United States varies among the population. One third of Hispanics are third generation or higher in the United States and speak English fluently.
4. Most are middle-income
More than half (57%) of Hispanic households fall in the middle-income category.
5. Emphasis on family
More than half of Hispanic households consist of at least four members, compared with about a third of all U.S. households. Nearly one third of households are married couples with children under the age of 18. Concern for family is paramount in Hispanic culture.
6. Bilingual information is important
This has the greatest potential of reaching most Hispanics. Companies reaching out to this market should offer their materials in both Spanish and English. Internally they should have bilingual employees with knowledge about the cultures of countries-of-origin of Hispanics.
7. Higher degree of financial concerns
Almost half of Hispanics are very/extremely concerned about dying unexpectedly without adequate financial protection compared to about one third of the general population. Like the general population, Hispanics buy life insurance to provide an income stream if the insured dies and to cover burial expenses. Hispanics differ on their concern about dying unexpectedly without financial protection.
8. Recognized companies succeed
Eight in 10 Hispanics consider it very/extremely important to buy from an insurance company they recognize. Characteristics like stability and longevity have strong appeal to Hispanics. Visibility in the community is also important.
9. Recommendations are key
About six in 10 Hispanics consider companies that are recommended by relatives and friends, compared to only four in 10 in the general population.
10. Professional advice wanted
Nearly 40% of all Hispanics strongly/very strongly agree with the statement I prefer to have a financial professional advise me, compared to 15% of the general population.
