• September 13, 2011

Hispanics have the lowest rates of life insurance ownership when compared to Whites and African-Americans, according to "The 2011 Insurance Barometer Study" from the nonprofit Life and Health Insurance Foundation for Education.

While 70% of Hispanic consumers agree that they personally need life insurance, only 54% of Hispanics say they own it. The gap is much narrower among other demographic groups. In comparison, 80% of African-Americans and 67% of Whites agree they need life insurance, while 76% of African-Americans and 62% of Whites own it.

Of the Hispanics who have life insurance coverage, more than one in five (22%) feel that their coverage is inadequate. When asked why they do not own more, the top reasons Hispanics cite are having other financial priorities (92%), life insurance being too expensive (83 percent), not being sure of how much or what kind to buy (74%) and not having been approached by anyone (58%).

Across all demographic groups, consumers are increasingly turning to the Internet for help in making life insurance purchases. Although two-thirds of all consumers still prefer to buy life insurance face to face from an insurance or financial professional, Hispanics -- more than any other demographic group -- prefer to purchase a policy direct from a company via the Internet (23% compared to 16% of Whites and 15% of African-Americans). -- Tanya Irwin