Relying on employer's insuranceMonday December 08, 2014 Written by Brandi Cowen
One-quarter of Canadians rely on insurance provided through their employers to ensure dependents will be supported in the event of death or disability.
The study, commissioned by BMO Insurance, found that those who are married or common law with children believe they need an average of $320,974 in life insurance coverage, while those who are married or common law and do not have children believe they need an average of $290,962 in coverage.
Single individuals without children believe they need $186,629, while those who are single with children believe they need an average of $106,517 in coverage.
However, the study found that only 16 per cent of Canadians have purchased life, critical illness and disability insurance.
When asked why they had not bought all three types of insurance, Canadians cited several reasons, including: "it is too expensive" (38 per cent); "I am in good health" (27 per cent); and "I feel that I already have enough coverage through work" (26 per cent).
Preparing for the unexpected
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 impact on their or their family's standard of living. More than half of all respondents (55 per cent) believe it would take fewer than six months for them to start feeling financially strained if they became seriously ill or disabled.
More than one-third of respondents (38 per cent) would feel financially strained in fewer than three months.
BMO Insurance commissioned Pollara to survey 1,002 Canadians over the age of 18 between Oct. 22 and 24. A probability sample of this size would yield results accurate to +/-3.1 per cent, 19 times out of 20.