As families continue their holiday shopping and start 2021 budgets, it's clear life and health insurance is one place they are not cutting corners, according to research from online insurance brokerage PolicyAdvisor.com.  

While 77 per cent of respondents say they will cut expenses like entertainment and eating out, only 13 per cent say they are looking to reduce life insurance premiums. 

Life insurance most important coverage during COVID-19 

The results come from the company's State of the Nation: Life Insurance Trends 2020 - Pandemic Checkup which seeks to determine consumer attitudes and buying behaviour towards life insurance considering COVID-19's impact on their lives. 

The report indicates 64 per cent of Canadians think life insurance is one of the most important types of coverage during the current pandemic; 63 per cent think owning life insurance is more important to them now than before COVID-19. 

An “urgency” now to get life insurance 

"The results confirmed what we see on a daily basis," said Jiten Puri, founder and CEO of PolicyAdvisor.com. "There is an urgency to get life insurance now that many know how quickly they may need it." 

All told, 44 per cent of Canadians plan to or have purchased more life insurance coverage because of COVID-19. The biggest reason preventing respondents from buying more life insurance at this time is their perceived inability to buy it online. 

"Many Canadians still feel helpless when it comes to comparing and buying life insurance, especially in the age of social distancing,” said Puri. 

The time commitment and medical testing requirements are also reasons some are not yet ready to purchase coverage. Puri stressed the clear need for consumer education.