Insurance professional and Mexican American Monica Rangel works hard to educate the Hispanic community about life insurance.
The founder and CEO of Efficient Financial and Insurance Solutions in Bree, California regularly helps members of his local community obtain life insurance coverage. Here are the biggest misconceptions their Hispanic customers have.
1. If something happens, we can count on loans or help from family.
Monica says this is one of the most prevalent myths in the Hispanic community. Many clients like to think that their children will take care of them or that other family members will step in in times of need; Any money needed in excess of this can be covered by the loan. But as she says, “Your kids are not your retirement plan.”
We know that we can count on our families for support as we move forward in life. However, if you die, your family’s world will turn on its axis emotionally and financially. The time of mourning is not the time to raise money for a funeral or to bear the added stress of money troubles.
Life insurance can be a solution that fits your budget so that this does not happen.
2. Life insurance for my children will be a free trip.
For many of Monica’s clients, it is important that their children learn to earn things. While “nothing is free” in life, they want to teach their children how to work hard and get what they want.
According to recent data from the 2022 Insurance Barometer Study by Life Happens and LIMRA, Hispanic Americans are slightly more likely than other races and ethnic groups to say they value hard work and do not feel that any One should also become rich with his life insurance. Policy (35 percent).
Your parents taught you to work hard and that is what you are teaching to your children. But life insurance doesn’t have to mean leaving your kids in financial straits. It’s about practicing and teaching the principles of personal financial responsibility.
As Monica says, “Isn’t it our job as parents to help our kids be better than us? We came here for a better life, the ‘American Dream’. We have settled in this country to give better opportunities to our children. Why aren’t we using the knowledge we’ve learned here to make financial moves? Why don’t we give them some means like life insurance to help them?”
Preparing for the future with life insurance is a lesson in goal setting, budgeting and discipline that can help your loved one recover financially – it’s a valuable lesson to take forward.
3. I’m going to “condemn” myself if I get life insurance.
Monica says some of her Hispanic clients fear that having life insurance will tempt fate. They think that something bad will happen to them if they get coverage.
“The image I have in my head is the grim reaper,” she laughs. “I promise the Grim Reaper won’t follow me! If this really happened, life insurance companies would be out of business.”
Overall, only a quarter of Americans are comfortable talking about end-of-life planning, but according to the same Barometer study, Hispanics report they are less comfortable when it comes to having those conversations.
We get it, talking about death isn’t at the top of your to-do list. Just like those annual doctor’s appointments or that last car service… it’s easy to put off. But tomorrow is never guaranteed. The more familiar you are with life insurance, the easier it will be to negotiate the tough times. For more tips on talking about life insurance with your loved ones, check out this article.
4. I’m only going to leave this earth with a handful of shit. I can “live it up” as long as I can.
Monica shared that many of her Hispanic clients feel that life is about living it to the fullest. “It’s a very cultural thing to think about living day-to-day. Even in Spanish songs, there’s a common theme of ‘you’ll only take the dirt with you when you die,’ so you might as well live it up.” Stay as long as you can. She says this contributes to a culture of living paycheck to paycheck.
This sentiment is supported by the Barometer study, which shows that paying monthly bills is the top five financial concern for Hispanic Americans, but not for other ethnic groups. This relatively high level of concern among Hispanic respondents (46%) suggests that many members of this group are not able to address competing financial priorities.
It makes sense… bills, rent or mortgage, car payments, childcare, food, gas. the list goes on. But what happens to your family financially if you die? If you’re gone, so is your income, but their bills and expenses stay the same. If money is tight, life insurance takes over the financial burden for your family when you are no longer around to do it.
What Monica tells her clients is, “It’s okay to live it, but why don’t you pay yourself first? Live it today, but at the same time, let’s create a strategy so you can live it.” Tomorrow Very.”
5. I will lose all the money invested in the policy and will not get anything back.
Monica says her clients often misunderstand life insurance and see it like any other type of insurance where you pay “just in case” but don’t receive anything in return.
She is quick to educate customers about the different types of life insurance. While it is possible that if you die after the end of the term, your beneficiaries will not get the death benefit with term insurance, with permanent insurance you will get lifelong protection as long as you pay the premiums. it means your beneficiary Desire Get paid when you die (depending on the claim-paying capacity of the insurer), whether it’s next month or 40 years from now.
Another way that permanent insurance dispels this myth is through what is known as the survivorship benefit. These policies can build up cash value over time that you can use to pay for anything you want while you’re alive, such as a down payment on a home, income for your retirement and Excess (the death benefit will be reduced once the cash value is reached) .
Working with an insurance professional like Monica is a great way to learn more and gain coverage. See our helpful information on how to choose a qualified insurance professional. Then use our agent locator to find one in your area.