Latino business community growing rapidly, but population is still largely uninsured

December 2005 (Medialink) - The Latino community is growing by leaps and bounds in the United States. Right now, there are about two million Hispanic owned small businesses across the country. And that number is expected to grow to 1 in every 10 by 2007, according to the U.S. Census Bureau Survey of Business Owners. But while their buying power continues to escalate, the attention to important issues like financial security and insurance lags seriously behind.

The fact that many Hispanics may be underinsured could spell trouble for families and small business owners. One of the problems is that many Hispanics don’t have the necessary information to make good decisions about insurance. Most families are not saving a lot of money and most of their purchases are made on the ability of making monthly payments. If the chief breadwinner passes away and the family loses that source of income, it becomes almost impossible for the wife to make mortgage, car, and utility payments.

Basic financial safeguards such as life insurance can help people protect their family from lost income. But it can also be used as an important tool to help meet financial goals and plan for the future. Because of the strong tax advantages that there is in life insurance, the IRS actually limits the amount of money you can actually put in a life insurance policy. Experts suggest that clients first determine what you need to put in the policy to make sure that it is permanent and the coverage will last a whole lifetime. Then, put an amount over that number to take care of any unforeseen expenses.

Small business owners have to be even more aware of the variety of insurance options. If the key-owner passes away, and that person is the sole owner, the family is going to need time to be able to transition and get that business running again. Experts say life insurance can provide liquidity for that period in order for that business to be able to continue.