Nearly two-thirds of those without insurance unlikely to obtain coverage within next five years
Many Canadians are foregoing life insurance, with a new survey showing concerns about costs and requirements.
Overall, 42% of Canadians said they do not have life insurance or are uncertain about their coverage status.
And nearly two-thirds of those without insurance (65%) say they are unlikely to obtain coverage within the next five years.
One in four respondents (25%) also expressed little or no confidence that their families would remain financially stable if they died suddenly, found the survey released by PolicyMe. By contrast, the majority of Canadians who currently have life insurance (80%) feel confident in their family’s financial security.
For those who are insured, the most common source is:
- workplace benefits (37%)
- term life (15%)
- mortgage-related coverage (8%).
Life insurance affordability
The report highlights affordability, medical requirements, and industry mistrust as key barriers.
More than one in three Canadians without coverage (34%) say it’s too expensive, and 42% of those have children in the household.
Parents appear especially affected. Nearly half (49%) said they do not intend to purchase life insurance in the next five years, citing high costs as the main deterrent. Among them, 42% described premiums as unaffordable.
The survey was conducted in August among a representative sample of 1,507 adult Canadians who are members of the Angus Reid Forum.
There are four types of life insurance in Canada: term, permanent, participating and universal, according to Canada Life.
Barriers to life insurance: medical tests, distrust
More than one-quarter of Canadians (26%) said the need for medical tests discourages them from buying insurance, while 37% of those considering coverage in the next five years said the tests make them hesitate.
Confidence in insurance providers also remains mixed. One in five respondents (21%) believe that insurers approve only half or fewer of their claims, despite a reported 99% payout rate nationwide.
“Life insurance is supposed to provide peace of mind, yet our findings show that too many Canadians either don’t have coverage or don’t trust the industry,” said Andrew Ostro, CEO and co-founder of PolicyMe.
