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9 Hispanic Myths About Life Insurance

Key takeaways:
• Hispanics are the fastest-growing minority group in America.
• Many people in the Hispanic community believe that insurance is expensive but very affordable.
• People sometimes think they don’t need insurance if they’re healthy, but anyone can develop a health condition at any time.
• Loans come with interest rates and other fees that can add up quickly, so relying on loans is not a good idea.
• It’s important to have conversations about insurance with your family so they are prepared in case of your death.
• Suppose you have financial responsibilities like school loans or credit card debt. In that case, insurance can help your loved ones repay those bills if you die.

Hispanics are the fastest-growing minority group in the US, making up 18% of the population as of 2018. And yet, despite this growth, there is still a lot of misinformation circulating about life insurance within the Hispanic community. In this blog post, Family First Life – Strong Tower & Hammer Lane Consultants will bust five common myths about life insurance so that you and your community can decide if it is right for you.

Myth #1: “I Don’t Need Life Insurance Because I’m Healthy”

Wrong! Just because you’re healthy now doesn’t mean you’ll be healthy forever. Anyone can develop a health condition at any time—regardless of age, lifestyle, or family history. And suppose you do develop a health condition. In that case, it could make it difficult or even impossible to get life insurance later on down the road. That’s why it’s always best to get covered as soon as possible while you’re still young and healthy. Otherwise, you could be taking a big risk.

Myth #2: “Life Insurance Is Too Expensive.”

Many people in the Hispanic community believe that insurance is too expensive and can’t afford it. The truth is that individuals overestimate the cost of insurance by around five times! According to NerdWallet, the average monthly cost of life insurance is $26. Many people spend more than this amount on eating out each month. Simple financial adjustments can help make insurance more affordable!

Myth #3: “We Can Rely on Loans If Anything Happens.”

Some people in the Hispanic community believe that they can rely on loans if anything happens. But the truth is loans come with interest rates and other fees that can add up quickly. If you cannot return the loan, you could end up losing your home or other assets. And if something happens and you cannot repay the loan, your family will be left with the burden.

Myth #4: “I’m Going To “Jinx” Myself If I Get Life Insurance.”

People in the Hispanic community think that purchasing life insurance may tempt fate. They believe that obtaining coverage will result in something horrible happening to them. According to the same Barometer Study, only a quarter of Americans feel comfortable discussing end-of-life preparation. Still, Hispanics are even less at ease with those discussions.

We understand that discussing mortality isn’t at the top of your priority list. However, tomorrow is never assured. It’s important to have these conversations with your family and loved ones, so they are ready in case of your death. The more you learn about life insurance, the simpler it will be to have those difficult talks.

Myth #5: “Our Family Will Support Us If Something Happens.”

While having a supportive family is great, you can’t always count on them financially. In fact, 65% of adult Americans have no idea how much money their parents make or have saved for retirement, according to a study by the FINRA Investor Education Foundation.

Your family may love you, but they shouldn’t have to shoulder your final expenses. A life insurance policy will help care for those costs so your family can grieve without worrying about money.

Myth #6: “I Don’t Need Life Insurance Because I Don’t Have Any Dependents.”

Just because you don’t have children or a spouse doesn’t mean you don’t need life insurance. Suppose you have school loans, credit card debt, or other financial responsibilities. In that case, insurance can assist your loved ones in repaying those bills if you die.

Myth #7: “Life Insurance Is an Easy Way Out for My Children.”

Some Hispanic people think buying their children’s insurance is a way of absolving themselves of responsibility for their future. But that’s not the case. Purchasing insurance for your children shows how much you love and care for them. It’s also a smart financial move, as it can give them a death benefit to help pay for funeral costs, outstanding debts, or future education expenses.

9 Hispanic Myths About Life Insurance

Myth #8: “I’m Going to Lose All the Money I Placed into The Policy and Receive Nothing in Return.”

Many people misunderstand life insurance and mistake it for other forms of insurance in which you pay “just in case.” Nevertheless, you don’t always get anything in return.

While your beneficiaries may not get a benefit if you die after the policy’s expiration date with term insurance, you will enjoy everlasting protection as long as you pay the payments with permanent insurance. This implies that your beneficiaries will get a payout when you die (depending on the insurer’s claims-paying capabilities), whether next month or 40 years from now.

Another manner in which permanent insurance dispels this notion is through living benefits. These plans can accumulate cash value over time, which you can use while you’re still living to pay for anything you choose, such as a down payment on a home, retirement income, and more (accessing the cash value will decrease the death benefit).

Myth #9: “My Employer’s Life Insurance Policy Is Enough”

Thirty-five percent of Hispanics who possess insurance say they only have it because their employer offered it. Employer-sponsored insurance policies are excellent since they are usually very reasonable, if not free, for employees. Most people, however, benefit from obtaining their coverage for two reasons:

  • Most employer-sponsored plans do not provide comprehensive coverage to fulfill financial demands.
  • Most employer-sponsored plans aren’t “portable,” which means that if a person changes jobs or retires, they lose their coverage.

Individual life insurance can help people fulfill their financial needs by providing coverage they can carry no matter where they work.


Life insurance is an important financial safety net for families all over America, including Hispanic families. If you don’t have insurance, we hope this article has helped dispel some myths that might be holding you back from getting covered.

Family First Life – Strong Tower & Hammer Lane Consultants serving Denton, TX, is dedicated to providing you with whole life insurance options tailored to your needs. We will help you and your family when it counts the most, whether with security and peace of mind or protection from unforeseen occurrences.

Don’t put it off any longer; receive your free quotation today!