During Hispanic Heritage Month, the United States celebrates the remarkable contributions and growth of the Hispanic community.
According to the U.S. Census Bureau, there are more than 65 million Hispanics in the U.S., nearly 20% of our nation’s population. The purchasing power of the community is about $3.4 trillion. If measured by GDP, this would be the fifth-largest economy in the world.
Despite this market size, Hispanic Americans are less likely to have life insurance to provide for their families after a tragedy. According to the 2024 Insurance Barometer Study by LIMRA and Life Happens, only 43% of Hispanics have life insurance coverage, the lowest ownership among any racial or ethnic group.
The life insurance industry is taking concrete steps to reach this underserved Hispanic market. We recognize that we need to better educate consumers about the affordability of life insurance. LIMRA’s research shows that 72% of Hispanics overestimate the cost of a term life insurance policy.
Life insurers also know that we could improve our outreach efforts. This is especially important because a study of the Employee Benefit Research Institute found many Black and Hispanic Americans prefer to work with an adviser who has a similar racial or ethnic background and/or who has a similar upbringing or life experiences to them.
LIMRA research reveals that only 34% of Hispanics are currently working with a financial professional. As our nation’s Hispanic population grows, the number of Hispanic financial professionals must also increase. America’s life insurers are actively engaged in efforts to increase Hispanic agent recruitment and retention. We are also working to improve the producer licensing process, including making the producer examination available in more languages than English and exploring mentorship and apprenticeship programs to increase the number of Spanish-speaking producer candidates.
Every American – no matter their age, job, gender or race – should be able to plan for a secure financial future. The life insurance industry is committed to increasing access to affordable financial protection, allowing all Americans the opportunity to build intergenerational wealth, while providing a financial safety net that protects their families through all stages of life.
Michelle Carroll Foster is Chief Inclusion Officer at the American Council of Life Insurers (ACLI). She joined ACLI in 2019.
