A new poll by RBC Insurance reveals that most Canadians aged 25 to 50 are losing sleep over their finances and health, but are foregoing the opportunity to secure their future with life insurance.
Among those respondents, 74% said they were worried about their financial situation, 72% cited their health and wellbeing, and 58% reported worries over their family’s financial security if they weren’t around to help provide for the household.
Worryingly, almost four in 10 Canadians were found to not have life insurance. Among that cohort, 21% said they were unwilling to forfeit any of the little pleasures and conveniences they enjoy in exchange for life insurance. Others were willing to sacrifice certain items or regular expenses, including:
- One dinner out a month (35% of those willing to make sacrifices);
- One trendy clothing item per month (34%);
- One meal bought at work per week (28%);
- A bottle of wine/case of beer (35%); and
- A daily coffee (25%)
“It only takes small lifestyle changes, such as making coffee or lunches at home, or even buying one less item to afford coverage that can help Canadians sleep at night,” says Maria Winslow, senior director for Life & Health at RBC Insurance. “These are small sacrifices that could provide future financial security for family and loved ones should you pass away, and save them from potentially facing long-term financial hardship once they can no longer depend on your income.”
Compared to respondents with life insurance, those without coverage were less likely to be confident in their family’s ability to cover a variety of expenses should they pass away without insurance. These include food, clothing, and other necessities (67% of those without coverage confident, vs. 87% among those with coverage); a car or transportation (60% vs. 75%); mortgage, rent, or housing costs (54% vs. 71%); and childcare or education (51% vs. 73%).
The poll also found that more Canadians were open to purchasing life insurance if it was suggested by a family member (54%), or if they knew that friends already had it (35%).
“No matter whether they are single, a newlywed or raising a family, younger Canadians can benefit from the financial security life insurance coverage provides, for the cost of just a couple of lattes each week,” Winslow said.
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