Half of Canadians Fear Families Could Not Cope Without Thempar Andrew Rickard | August 06 2015 10:46AM
A study conducted for the BMO Wealth Institute shows that half of Canadians are worried that their deaths would place their families in financial difficulties, and about a quarter say they are “very concerned” that the financial well-being of their family would be in jeopardy.
Despite these anxieties, the survey revealed that many Canadians remain un- or underinsured; 31% of the respondents indicated that they did not own any kind of life, travel, accident, disability, critical illness or long-term care insurance. The percentage of those who own no coverage at all increases to 37% for members of the Baby Boom generation, namely those between the ages of 55 and 64.
Asked about the products they currently own or plan to purchase in the next 12 months, fewer than half (43%) of those surveyed said they have or expect to buy purchase life insurance. Broken down by demographic, only 20% of Millennials (ages 18 to 34) said they have or expect to buy disability coverage, 21% of Generation X (ages 35-54) own or plan to take out critical illness insurance, and just 15% of Baby Boomers currently have or intend to purchase a long-term care policy.
“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, so it’s concerning that so few feel that their insurance needs are being met,” comments Chris Buttigieg, Senior Manager, Wealth Planning Strategy at BMO Financial Group.