Hispanics need more information about cost, needs & benefits of life insurance.

A new study unveils unique insights on the Hispanic community’s needs, attitudes and perceptions about financial planning and term life insurance. Genworth Financial, Inc. presented at the National Press Club in Washington DC the results of a comprehensive “Hispanic Term Life Insurance Market Study,” conducted by LIMRA International.

Following are the research study’s most compelling findings:

– English speaking Hispanics are more likely to own individual life insurance than Spanish speakers (67% versus 25%) and are more open to alternative channels for learning about life insurance.

– According to 42% of the respondents, understanding the price of life insurance is the most important piece of information Hispanic consumers need to help them decide on what to purchase.

– Many Hispanic consumers think life insurance is an unaffordable luxury reserved for the rich and would be surprised to learn just how affordable term life insurance can be. Of those surveyed, many believed term life insurance, depending on a person’s age and health, costs two, three or four times more than it really did.

– Face-to-face interaction is the preferred method for learning about life insurance. About half of the respondents indicated interest in learning through seminars. English speakers are open to a variety of locales including their workplace and hotels, while Spanish-speakers show a preference for their local churches. However, very few Hispanics have ever been approached by a life insurance agent.

In order to bridge the gap in financial education and protection among the U.S. Hispanic community, Genworth Financial invited leading government, business and Hispanic organizations to participate in a panel discussion to open a dialogue and take an active role in helping Hispanic families protect their dreams and financial futures.

Members of the panel included Michael L. Barrera, president and CEO of the U.S. Hispanic Chamber of Commerce (USHCC); Joseph M. Normandy, executive director of the National Association of Independent Life Brokerage Agencies (NAILBA); Thomas Oliver, executive director & CEO of the National Association of Hispanic Publications (NAHP); and Javier Ismodes, Vice President of Emerging Markets for Genworth
Financial. The keynote speech was delivered by U.S. Treasurer Anna Escobedo Cabral who discussed the importance of financial literacy within minority communities in making informed decisions about protecting their families.

According to LIMRA, the intention to buy life insurance is guided by a consumer’s awareness and perception of the product. Among the key barriers cited in the study by Spanish speakers for not having life insurance are strong cultural perceptions associated with financial products and institutions from their countries of origin, the lack of information about these products and an overall lack of understanding the options available for protecting their financial security.

“Our study reaffirms the need for institutions and organizations to take an active role in providing financial education for the Hispanic community to change the attitudes and perceptions of Hispanics towards the benefits of financial protection,” said Javier Ismodes, vice president of emerging markets for Genworth Financial. “At Genworth we are committed to serving the needs of the Hispanic community and financial education is at the forefront in our mission of empowering Hispanics in the U.S.”

Additional key research findings from the “Hispanic Term Life Insurance Market Study” include:

– Men are slightly more likely than women to believe that nothing tragic will happen to their family; 61% of men and 48% of women agree with that statement.

– 64% of younger respondents (ages 25-34) carry a stronger recognition of the need for life insurance than older respondents.

– Spanish-speaking respondents show a stronger sense of family care and protection. 86% of the Spanish-speakers expect to take care of their parents financially when they are older compared to 60% of English speakers.

“The study reveals a wide gap between the amount of insurance U.S. Hispanic households own and the amount they feel they need for adequate financial protection,” said Pete Jacques, Ph.D., director of custom research of LIMRA International. “Corporations, organizations and the life insurance industry have a clear obligation and opportunity to try to fill this unmet need, and they need to have a proper understanding of the cultural values and perceptions to successfully provide protection solutions to the Hispanic market.”

For more information at http://www.genworth.com