A recent study by the Life Foundation revealed that 93% of the Latino population believes that life insurance, as well as a health insurance is important, but 49% of the people who participated in the survey said they did not have enough coverage. The same survey found that 44% of adult Hispanics have no life insurance coverage compared to 37% of the non-Hispanic population. There is a high level of anxiety in the Hispanic community about insurance coverage. Most people fail to take steps needed to get adequate coverage for several reasons.
The main reasons US Hispanics don’t have enough coverage is the cost of the insurance, the lack of knowledge about insurance coverage and procrastination. The main ingredient to reverse Latino buying patterns when it comes to health and life insurance is education. Health and Life insurance providers are investing millions to educate the Hispanic consumer through Spanish- language newspapers, radio stations and cable television programs, as well as on Spanish-English Internet websites. Small business owners as well as individuals are the targets for these Hispanic media campaigns, in fact in 2008 the total dollars invested in Hispanic health and life insurance awareness was close to 50 million dollars. In addition, Hispanics have the highest uninsured rates of any racial or ethnic group within the United States. In 2017, the Census Bureau reported that 49.0 percent of Hispanics had private insurance coverage, as compared to 75.4 percent for non-Hispanic whites.
Examining Hispanic and Latino Health and Life Insurance Buying Patterns
There are other issues that must be considered when examining the buying patterns of the US Hispanic population. The socioeconomic status, citizenship status, migration experiences and the length of time spent in the US, as well as the number of generations who live in the US, produce significant differences in the thought process when it comes to life and health insurance needs. Another important factor that makes the Latino market so diverse is individuals and groups have different racial backgrounds, which include: Hispanic-White, Hispanic-Black, Hispanic-Asian, Hispanic-Native American and so forth. The racial Hispanic backgrounds of Cubans, Puerto Ricans, Central and South Americans and others, all play a role in how everyday life choices are established.
All of these racial groups have different life experiences which have an impact on insurance decisions. There will always be one section of the Hispanic population that is growing faster than another, but all groups need insurance. When a target group is identified, a cohesive plan can be established that addresses the main issues of cost, lack of knowledge and procrastination as they pertain to that group and an individual strategy can be implemented.
The Internet offers the greatest opportunity when it comes to providing insurance coverage for the Hispanic market. Developing website tools in Spanish as well as English and using the services of Hispanic Market Advisors will provide a foundation that can be expanded on a daily basis. The key to fulfilling the insurance needs of the Hispanic population is developing a relationship which is a caring partnership that understands and educates, as well as adds value to personal dreams.
For more information, please complete our Hispanic Market Advisors contact form and we will respond to you promptly.
ABOUT THE AUTHOR
Sebastian Aroca is an entrepreneur and a customer centric professional. He co-founded Hispanic Market Advisors, a company that offers English to Spanish translation and Spanish SEO services. Sebastian has over 10 years of professional experience managing regional customer programs and client acquisition strategies in the areas of sales and marketing communications, primarily for the U.S. Hispanic and Latin American & Caribbean markets.