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Bridging the Knowledge Gap to Meet Hispanic Demand

Author

Severine Suski
Assistant Research Director, Markets Research
LIMRA and LOMA
ssuski@limra.com

September 2025

It is a common issue for consumers to have challenges understanding life insurance, which has been a well-documented obstacle in buying individual coverage. Forty-one percent of Americans say they are only somewhat or not at all knowledgeable about life insurance, which is no different than Hispanic consumers at 42 percent, according to the 2025 Insurance Barometer Study conducted by LIMRA and Life Happens.

However, Hispanic consumers are the demographic with the highest level of self-identified need for coverage at 50 percent, with 49 percent of those needing coverage saying they are somewhat or not at all knowledgeable about life insurance, according to the same study.

 As this demographic continues to grow, it is important for insurers to address this need. Getting more coverage in the hands of Hispanic Americans starts with educating prospective consumers on the basics of life insurance.

In April 2025, LIMRA conducted a qualitative study to better understand the Hispanic consumers' gap in coverage. All individuals in this study were interested in buying their first policy or buying more coverage.

One of the main obstacles most of them shared was difficulty in understanding policy options. Some mentioned that they need support in navigating this barrier. Ownership is not necessarily an indicator of understanding life insurance, as even current policyholders often admit that they don’t know enough about the new coverage they may need.

“I'd be more interested, but I'm aware there are different options, and I'd like to talk to someone who won't try to trick me.” — Tania, non-owner, Spanish-speaking participant
“​In the past, ​what stopped me was not understanding the policies, ​coverages, and limitations. ​The language used always seems convoluted and confusing.” — Marissa, non-owner, English-speaking participant
“Mostly I’m just uninformed about what I need and the costs.” — Mark, non-owner, English-speaking participant

Lack of knowledge about life insurance is not a new barrier to the Hispanic population. In 2012, we heard similar sentiment from LIMRA bulletin board participants. Regardless of ethnic or racial background, there is a strong need to help consumers understand life insurance products, highlighting the fact that carriers need to develop new strategies to address this long-standing knowledge deficiency amongst consumers.

“What’s keeping me from getting life insurance so far is that I really know nothing about it. I tried to research it a little myself — but I found it too complicated. I didn’t know how much to get or how much I should be spending. It’s something I would need to go in (an office) and speak with someone.”
- U.S.-born participant, English-language bulletin board, 2012

The complexity of the purchase process often adds a level of difficulty for Hispanic consumers. The process feels long, overwhelming and unfamiliar. One participant refers to the process as a “black hole” of options, forms and fine print. Purchasing life insurance is seen as being intimidating, so addressing the complexities as well as providing support in navigating the landscape would be beneficial to prospective consumers.

Education and Engagement

Hispanic consumers are in need of more educational resources and guidance in order to navigate purchases and ultimately buy coverage. They want simpler explanations, tools and real-world examples. Hispanic consumers, like many other consumers, have general confusion around the “fine print,” due to the complexity of the product and process, which can lead to procrastination, even amongst motivated individuals.

This is an opportune environment for carriers and financial professionals to educate Hispanic consumers through culturally relevant, emotionally resonant tools and content. If companies make financial literacy feel personal, accessible and actionable, Hispanic consumers may be more likely to move forward with the purchase process. Educating consumers on products not only has the potential to decrease their barriers to purchase, but improving consumers' product literacy can increase the amount they would be willing to spend by purchasing higher coverage amounts, as highlighted in Insights on the Consumer Decision-Making Process for Life Insurance: What Matters Most (for Whom)?,  LIMRA, 2025.

To accomplish these goals, insurers should consider:

Demystifying Coverage: Provide clear, plain-language explanations of policies and coverage.

“Provide very clear and transparent pricing up front as best as possible. Transparency in most things is key.”
– Cristina, non-owner, English-speaking participant

Prioritizing Inclusive Communications: Bilingual tools, visuals and community-oriented workshops can simplify core concepts. Offer easily digestible resources in both English and Spanish. Enhance cultural relevance and personal connections as Spanish-speaking participants are more likely to express a need for clear, culturally aligned information.

“Send out information and brochures in Spanish, explaining how life insurance works. Also, try to set up one-on-one meetings with people who are interested, or organize a group gathering at a restaurant or café to walk through how life insurance works.”
— Manuel, owner, Spanish-speaking participant
“I would make sure to do community service projects that helped the community and improved the community as a whole. And of course, have media coverage and social media coverage that we did these acts, so the community sees the differences we are making outside of just insurance coverage.”
— Robert, owner, English-speaking participant

Launching Educational Campaigns: Address the knowledge gap directly with educational campaigns. Provide a breakdown on how insurance works, how costs are calculated, how risk pooling means some consumers would pay much less than they expect, and how life insurance folds into planning a stable future for oneself, one’s family, and future family members. Highlight how life insurance ownership can create generational wealth.

“I think what I’d do is create a campaign specifically focused on the Latino community where people can access education about life insurance policies, get clear and transparent information, and have the chance to ask questions.”  
— Jeffery, owner, Spanish-speaking participant

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