Canadians Not Putting Money Where Their Mouths Are

By Andrew Rickard | December 08 2014 01:06PM

While Canadians say they place a high value on their family's financial well being, many have not taken out insurance to safeguard it.

A recent survey conducted by Leger for Edward Jones asked people to rank the top three things they would pay money to protect; 68% of respondents chose “the financial well-being of their family” and 61% chose “my quality of life in old age”.

However, Edward Jones points out that the survey revealed a discrepancy between consumers’ stated priorities and the steps they have actually taken. While 64% of respondents indicated that they had bought life insurance, only 23% had purchased disability coverage, and just 11% had purchased critical illness, and another 11% said they had long-term care coverage. Asked where they obtained this insurance, only 32% said that they had acquired it through a financial advisor.

“It’s clear that Canadians want to protect the financial future of their families, but we’re seeing a ‘say-do’ gap here between intentions and actions,” comments James McKeown, senior insurance specialist with Edward Jones.

McKeown suggests that the lack of help from advisors may explain the level of consumer inaction. “Not involving your financial advisor in decisions about insurance is like embarking on a road-trip with only half a map — there’s a good chance you’ll make a wrong-turn,” he says.