42% of the Canadians have no life insurance – are you one of them? – Moneysense

The report sheds light on how many Canadians their families are at a financial risk – and why so many many postponed cover.

How wide is the coverage gap?

The policy research showed that a stunning 42% of the Canadians has no life insurance policy or not knowing if they have it, with almost two -thirds of those who are uninsured that they will probably not get coverage in the next five years. Families with children are the most difficult: almost half (49%) of the parents who say they will probably not buy life insurance in the same period.

Yet one in four Canadians without cover is not convinced that their families would be financially safe if they died unexpectedly.

Life insurance changes that. Among those with coverage, 80% say that they are sure that their loved ones would be financially protected.

It is clear that life insurance offers peace of mind – so why do so many Canadians still postpone it?

Read more: Do I really need a life insurance policy?

Why skip life insurance life insurance

Among the respondents, more than a third says that they have no life insurance coverage because it is just too expensive – and 42% of those people have children at home. About 10% say that the high costs of living have delayed their plans, non-essential expenses that usually go the first when budgets become tight.

Medical requirements are a different barrier. A little over a quarter (26%) hesitates to buy a life insurance policy because of the medical questions that many policies need.

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Perhaps the most striking is that 27% of Canadians – more than one in four – believe that they do not need life insurance.

Consider a family of four who live in a single income. If the primary earner died unexpectedly, the loss of income could put great pressure on daily life shares such as rent or a mortgage, groceries and childcare quickly count up. A payment of a life insurance policy can replace lost income, cover debts and give the surviving parent respiratory space to concentrate on family for a difficult time instead of on finance.

The benefits of being covered earlier

When it comes to a life insurance policy, starting early is the key. The costs of life insurance increase by an average of about 8% per year that delays, so securing a period of time policy if you are younger means that you will enjoy the lowest rates for longer.

But getting coverage is better than never – and it is probably more affordable than you think. According to the policyThe average costs of a life insurance policy of 20 years are around $ 20-30 a month for $ 500,000 in coverage if you start in your thirty.

And the days that you have to visit an agent have disappeared and apparently endless sales talks. Many providers offer online quotes, while some can complete the entire process online – from getting quotes to completing the medical questionnaire to completing your coverage.

Life insurance does not have to be complicated or expensive; The point is to ensure that your loved ones are protected and give yourself peace of mind, regardless of when you start.

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About Jessica Barrett

Jessica Barrett is the editor -in -chief of Moneysense. She has extensive experience in the fintech industry and personal financial journalism.