This amount, however, varies depending on one's personal situation. According to the study:
• Those who are married/common law with children said they need an average of $320,974
• Those who are married/common law without children said they need an average of $290,962
• Single individuals (without children) said they need an average of $186,629
• Those who are single with children said they need an average of $106,517
"The dollar amount of insurance that people need depends entirely on their personal situations - if they're married, if they have kids, if they're single, if they have coverage through work and so on," said Rocco Casullo, Head, Direct to Consumer Insurance, BMO Insurance. "However, while many people tend to focus on making sure that their family is supported financially if they were to die, it's also important to take into account that illnesses and accidents can happen as well. These types of unexpected events can put a tremendous amount of financial stress on both the affected individuals and their families."
According to the study, 65 per cent of Canadians believe that developing a critical illness or becoming disabled as a result of an accident would have a significant financial impact on their or their family's standard of living.
Further, more than half (55 per cent) believe it would take fewer than six months for them to start feeling financially strained if they became seriously ill or were disabled; more than a third (38 per cent) would feel financially strained in fewer than three months.
Canadians feel they need an average of $265,607 in life insurance coverage paid out upon their death to ensure that funeral expenses and debt are covered and that their dependents are supported financially.