NEW YORK, N.Y., May 12 /PRNewswire-HISPANIC PR WIRE/ — The nation’s economic woes have been a wakeup call for U.S. Hispanics about their family financial protection planning and is motivating them to want more financial security for their loved ones. These results are among the findings from a new national survey conducted by New York Life Insurance Company and Ipsos Public Affairs, a leading global survey-based market research company. In a study of Hispanics age 18 and older, respondents said the economic crisis has made them more inclined to provide financial protection for their family.
“Hispanics are facing a paradigm shift,” said Juan Roberto Job, corporate vice president and Hispanic Market manager for New York Life Insurance Company. “This growing segment of the population is re-thinking the way they view financial protection and what it means to be financially prepared. Certainly the financial crisis has propelled this change in thinking, especially when considering that Latinos have been hardest hit by the recession(1).”
The telephone survey, which was conducted in February and March, found that three quarters (77 percent) of Hispanic adults surveyed agreed the recession increased their desire to provide a financial safety net for their families. More precisely, four in ten (42 percent) strongly agree and 35 percent somewhat agree. Those most likely to agree reported an income of over $50,000 (87 percent), and at least some college education (87 percent).
The survey, conducted in English and Spanish, also found that despite growing awareness, lack of knowledge is a barrier for Hispanics to be financially prepared. Almost half the respondents (47 percent) agreed that a lack of information about financial protection planning was an obstacle to providing financial protection to their families. The second most prevalent hurdle, according to 39 percent of respondents, was believing financial protection is unaffordable and that they didn’t have enough money. Hispanics surveyed reported that other reasons for not providing additional financial protection were not thinking about it (30 percent), not trusting others with such financial matters (20 percent), and just not getting around to it (20 percent). One in five (21 percent) believe that they do not need it.
“The 2010 U.S. Census is expected to find that Hispanics number more than 50 million in this country, an increase of 42 percent since the last Census in 2000(2),” said Mr. Job. “As the largest minority group and the fastest-growing segment of the U.S. population commanding nearly $1 trillion in annual buying power(3), Hispanics can no longer afford to be in the dark when it comes to being financially prepared. Fortunately, as a top-rated company in financial strength, New York Life has solutions to the concerns cited by Hispanics in this poll, and stands ready to be a prime resource to meet their current and future needs.”
Aside from aggressively increasing the number of financial professionals hired and trained to serve the growing Hispanic community, New York Life is currently producing culturally relevant information, in-language for agents and clients. Last year, New York Life hired a record number of Hispanic Market agents and seeks to exceed that number in 2010. Thanks to the enhanced support available, New York Life agents are increasing their participation in community events and activities, while offering free financial needs reviews to help Hispanic families and businesses define their financial protection goals and possibilities.
“The implications of this poll for the insurance and financial industry are that we all need to do a better job of educating the fast-growing Hispanic community about the many resources that are available to them so that they are better able to ensure a brighter financial future for their families,” said Mr. Job. “In order to meet the stated needs of Hispanics, we must be as sensitive to their cultural nuances as we are to the details of their financial protection planning. New York Life’s Hispanic Market agents are well-prepared to do just that.”
Mr. Job, son of Mexican immigrant parents and author of a book about Hispanics succeeding in the corporate world, also added, “As the old saying goes, ‘Most people don’t plan to fail, they fail to plan.’ This poll indicates that Hispanics are more motivated to ensure financial security for their families and to do so they must set their goals and then implement a plan with a trained finance professional. We encourage Hispanics everywhere to contact their local New York Life agent to get started.”
Other Survey Results
— The New York Life survey reveals those Hispanics who are Spanish dominant (54 percent) are more likely to say they need more information as the reason for their lack of financial protection planning.
— Among English dominant Hispanics, only 37 percent responded they needed more information.
— One third of respondents (36 percent) say their families’ future financial goals would be funded by getting an additional job if something happened to the breadwinner in the family.
— One quarter (25 percent) report that their family’s future financial goals would be funded by life insurance; and one in five (20 percent) by retirement savings.
— Hispanics under age 55 were more likely to say their family would rely on someone taking an additional job (39 percent) than those who were age 55 or older (20 percent).
— Those age 55 or older (31 percent) are more likely to report their family would rely on retirement savings than those who are younger (18 percent).
— On the other hand, the proportion of Hispanics who say their family would rely on life insurance is similar among the two age groups (26 percent of those under the age of 55 and 25 percent for those 55 or older).
— Spanish dominant Hispanics were more likely (34 percent) than English dominant Hispanics (23 percent) to report they just have not thought about providing their family with additional financial protection.
These are some of the findings of an Ipsos poll conducted from February 11 to March 7, 2010 with a nationally representative sample of 500 Hispanics aged 18 and older, interviewed by telephone via Ipsos’ U.S. Hispanic Omnibus. With a sample of this size, the results are considered accurate within 4.4 percentage points of margin of error, 19 times out of 20, of what they would have been had the entire adult population of Hispanics in the U.S. been polled. Respondents had the option to be interviewed in English or Spanish. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error. Survey data was weighted to ensure that the sample’s composition reflects that of the actual U.S. population according to U.S. Census figures.
To receive additional information, or speak to a New York Life spokesperson, please contact Monica Contreras at (212) 576.8398 or firstname.lastname@example.org.
New York Life Insurance Company, a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States* and one of the largest life insurers in the world. New York Life has the highest possible financial strength ratings from all four of the major credit rating agencies. Headquartered in New York City, New York Life’s family of companies offers life insurance, retirement income, investments and long-term care insurance. New York Life Investments** provides institutional asset management and retirement plan services. Other New York Life affiliates provide an array of securities products and services, as well as institutional and retail mutual funds.
Visit New York Life’s Web site at http://www.newyorklife.com for more information.
Ipsos Public Affairs is a non-partisan, third party, survey-based research practice made up of seasoned professionals who conduct strategic research initiatives for American and international organizations, based not only on public opinion research, but elite stakeholder, corporate, and media opinion research. Ipsos has media partnerships with the most prestigious news organizations around the world. Ipsos Public Affairs is a member of the Ipsos Group, a leading global survey-based market research company that provides boutique-style customer service. To learn more, visit: http://www.ipsos-pa.com
*New York Life is the largest mutual life insurance company based on the Fortune 500, ranked within industries, Insurance: Life, Health (Mutual), Fortune magazine, May 3, 2010.
**New York Life Investments is a service mark used by New York Life Investment Management Holdings LLC and its subsidiary, New York Life Investment Management LLC.
1) Source: New York Times: “Many Hispanics are Hit Hard by Economic Slump,” May 12, 2008
2) Source: U.S. Census Bureau, 2000
3) Source: HispanTelligence Report, U.S. Bureau of Economic Analysis, 2004
SMRU# 418969 CV Exp. 05/10/2011
SOURCE New York Life Insurance Company