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Hispanic Americans and Life Insurance: Bridging the Nation's Largest Coverage Gap

By the Bestow Team·September 11, 2023·4 Minute Read

In this Article

Many Americans are underinsured, or lack insurance altogether, but a specific group faces an even more pronounced issue. According to LIMRA, just 42% of Hispanic Americans nationwide have life insurance - the lowest of any race or ethnic group. 

At Bestow, we’ve long believed expanding access to life insurance means meeting customers where they are with easy-to-use experiences. To better understand the motivations and barriers for Hispanic Americans, we commissioned a survey of 232 self-identified Latinos. Here are our key findings: 

Hispanic Americans prefer to purchase life insurance online, and the preference grows by generation.

Everything has shifted online, and financial literacy and access are no exception. Just over half of Gen X and Millennial Hispanic Americans purchased their life insurance policy online, while 71% of Gen Z respondents purchased online, underscoring how the digital realm has become a natural extension of financial decision-making for younger individuals.

The preference for an online buying experience extends to the entire population. The 2023 Insurance Barometer Study showed just 29% of folks would prefer to buy their life insurance offline - a 55% drop in just about a decade. 

Carriers not accelerating their modernization will miss the boat with this growing and lucrative middle-market demographic. Nielsen data shows a collective consumer buying power of more than $2 trillion from Hispanic Americans, representing more than 20% of the U.S. population in 2023 and a whopping 40% in Texas, where Bestow is headquartered. 

68% of Hispanic Americans without life insurance plan to purchase…someday

Survey participants without insurance indicated they'd get around to shopping for it if or when their life circumstances changed. This data underscores the sentiment that folks often seek life insurance when they experience life events like marriage, home ownership, or starting a family. 

Gen Z represents over a quarter of the US Hispanic population. This group will outpace broader population growth in the next couple of years as they age into these milestones. Compared to older generations, Gen Z Hispanic Americans increasingly purchase homes, graduate college, and start their own businesses. The oldest wave of Gen Z turned 26 this year, meaning insurers must act quickly to get in front of this group as they mature into major life milestones. 

This highlights a massive opportunity for insurers to get in front of this market with relevant, timely content and easy-to-use online experiences – when they might purchase is varied, so having a steady online presence keeps insurers top of mind. 

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Just over half of Hispanic Americans do not have life insurance despite having financial dependents. 

Despite shouldering the responsibilities of financial dependents, such as partners and children, 51% of surveyed individuals lack any life insurance coverage. Families without adequate life insurance coverage could face financial strain when facing the unexpected, including outstanding debts, mortgage payments, childcare expenses, and funeral costs. This rings especially true for these survey respondents with a median of just $5,000 in savings - which would not even cover the $8,000 average burial costs in the U.S. 

The findings echo a broader trend observed among minority communities and lower-income households. Research by LIMRA suggests cultural factors, income disparities, and limited access to financial education can contribute to lower life insurance ownership rates among Hispanic Americans. LIMRA data shows that more than a quarter of Latinos say they don’t own any or more coverage because they don’t know how much they need or what type to buy.

Bestow’s findings underscore the importance of brand awareness, online presence, and continuous innovation for carriers to catch the technically savvy consumer. Reaching a diverse market requires more than just bilingual applications online. Representation in company leadership and marketing alongside well-planned online experiences will be paramount for life insurance carriers to close the coverage gap for Hispanic Americans. 


Bestow commissioned a third-party research firm to conduct an online survey of 232 individuals aged 18-60 in the United States who identify as Latino between August 13-14, 2023.

For this study, we define Generation Z as 24 and younger, Millennials aged 25-40, Generation X aged 41-56, and Boomer as 57+. 

About Bestow

Bestow is building the infrastructure to modernize life insurance, both as a direct-to-consumer life carrier and as a SaaS partner for leading carriers. Bestow's full-stack technology solutions can make buying life insurance fast, convenient, and more affordable for consumers. For life insurance carriers, Bestow offers a singular end-to-end technology platform to de-risk innovation, expedite modernization, and help increase profitability. Bestow is on a mission to increase financial stability for everyone by creating the best possible products and experiences that serve future generations. To learn more, visit

Policies are issued by Bestow Life Insurance Company, Dallas, TX, on policy form series BLI-ITPOL. Bestow Life Insurance Company products may not be available in all states. Policy limitations or restrictions may apply. Not available in New York. Our application asks lifestyle and health questions to determine eligibility to avoid requiring a medical exam.