HispanicBusiness

Although Hispanics see life insurance as a way to improve their family's financial well-being, they are less likely than the general population to own life insurance, according to a study by the nonprofit LIFE Foundation.

According to the study, 37 percent of Hispanics say that they do not have enough life insurance.

"Hispanics overestimate the cost of life insurance by more than 10 times the actual cost and think it's too expensive," said Marvin H. Feldman, president and CEO of LIFE. "What many don't realize is that life insurance premiums are at an all-time low, making it more affordable than ever to protect your family's future."

He added that September is Life Insurance Awareness Month, "an ideal time for Hispanics to focus on understanding the importance of life insurance, dispelling some of their misconceptions and taking the next steps in protecting their families."

The findings were released by the nonprofit LIFE Foundation and LIMRA as part of the 2012 Insurance Barometer Study, an annual survey designed to increase understanding about consumer attitudes and behaviors regarding insurance and financial planning.

Common misconceptions

According to financial expert Mike Periu, the most common misconceptions Hispanics have about life insurance are:

-- Misconception No. 1: I don't need life insurance right now. If you need life insurance, buy it today. Tomorrow may be too late.

-- Misconception No. 2: Life insurance is confusing. LIFE's Spanish-language page at www.cosaspasan.org can help. However, consumers should also consult with a qualified insurance professional in their community or their HR administrator at work. There's no substitute for expert advice.

-- Misconception No. 3: Life insurance is too expensive. A healthy 30-year-old can buy a 20-year, $250,000 policy for about 42 cents a day. There are policies to fit every budget.

Life Insurance Awareness Month, created by LIFE in 2004, is an industrywide effort involving hundreds of leading companies and thousands of insurance advisors.