A new report examining Canadians’ use of insurance to protect themselves and their families against the unexpected underlines the irony that while many see a need for coverage, few actually take advantage of it.
A new report examining Canadians’ use of insurance to protect themselves and their families against the unexpected underlines the irony that while many see a need for coverage, few actually take advantage of it.
The report from BMO Wealth Institute, Insuring for a Financially Secure Future, found that half of Canadians (51 per cent) are concerned that, should they pass away, the financial well-being of their family would be put in jeopardy, with just over one quarter (26 per cent) feeling very concerned.
Despite these anxieties, the report shows that many Canadians remain underinsured.
“Life is unpredictable and Canadians are clearly anxious about what would happen to their family in the event of death or an unexpected illness or accident,” said Chris Buttigieg, senior manager, wealth planning strategy, BMO Financial Group, “so it’s concerning that so few feel that their insurance needs are being met.”
Highlights of the report include:
- Although it is the top type of insurance policy purchased by Canadians, fewer than half (43 per cent) say they own or will purchase life insurance in the next 12 months;
- One third (thirty-one per cent) of Canadians do not have any of the following insurance policies: life, travel, accident, disability, critical illness or long-term care. This percentage increases to 37 per cent for Boomers (ages 55-64); and
- Only one third (31 per cent) are confident that their financial plan has addressed their insurance needs to mitigate risks.
Half of Canadians felt they had some level of understanding about the insurance products most appropriate for their life stage (49 per cent), with only 16 per cent feeling they have a very good understanding.
“As life changes, insurance needs change as well,” said Rocco Casullo, the head of direct to consumer insurance for BMO Insurance. “It’s important to educate your clients about the products that will provide the most benefits for you at your particular stage in life. There are plenty of online resources available, making it easier than ever to research the insurance options that are available.”
The report from BMO Wealth Institute, Insuring for a Financially Secure Future, found that half of Canadians (51 per cent) are concerned that, should they pass away, the financial well-being of their family would be put in jeopardy, with just over one quarter (26 per cent) feeling very concerned.
Despite these anxieties, the report shows that many Canadians remain underinsured.
“Life is unpredictable and Canadians are clearly anxious about what would happen to their family in the event of death or an unexpected illness or accident,” said Chris Buttigieg, senior manager, wealth planning strategy, BMO Financial Group, “so it’s concerning that so few feel that their insurance needs are being met.”
Highlights of the report include:
- Although it is the top type of insurance policy purchased by Canadians, fewer than half (43 per cent) say they own or will purchase life insurance in the next 12 months;
- One third (thirty-one per cent) of Canadians do not have any of the following insurance policies: life, travel, accident, disability, critical illness or long-term care. This percentage increases to 37 per cent for Boomers (ages 55-64); and
- Only one third (31 per cent) are confident that their financial plan has addressed their insurance needs to mitigate risks.
Half of Canadians felt they had some level of understanding about the insurance products most appropriate for their life stage (49 per cent), with only 16 per cent feeling they have a very good understanding.
“As life changes, insurance needs change as well,” said Rocco Casullo, the head of direct to consumer insurance for BMO Insurance. “It’s important to educate your clients about the products that will provide the most benefits for you at your particular stage in life. There are plenty of online resources available, making it easier than ever to research the insurance options that are available.”
