TD Insurance study finds individuals would need an average of $45,609 in savings if they cannot work for a year
Toronto, ON (Oct. 21, 2014) – A significant number of Canadians who hold debt would struggle to cope with the unexpected loss of their income, according to new research. A recent survey commissioned by TD Insurance reveals that 39 per cent of Canadians surveyed have no idea how they would pay for their expenses if they had no income for six months – a figure that rose to 44 per cent for those under the age of 35.
Nearly 70 per cent of respondents reported having “some” or “a lot” of debt. A majority of those with the most debt – 60 per cent – don’t know what they would do to pay their expenses in the event of a sudden illness.
“Personal circumstances, particularly loss of income due to critical illness, are often completely unpredictable,” said Anna Kavanagh, Vice President at TD Insurance. “The last thing you want to be worried about if you have a health emergency is your finances. Obtaining the right insurance coverage, paired with saving and maintaining manageable consumer debt, will help ease the financial burden brought about by a sudden illness.”
When asked, respondents reported they would need an average of $45,609 in savings to cover all expenses over the course of a year – just below the national average pre-tax salary as reported by Statistics Canada. Those with children reported they would need an average of $53,438. Interestingly the amount of savings required varies considerably among provinces.
While statistics show that one in two men and one in three women in Canada will suffer a critical illness before age 65, an increasing number is expected to make full recoveries.
“Thankfully, with advancement in medical sciences, many are expected to make a recovery. Having the right insurance plan will allow individuals to focus on what matters most – getting better,” said Kavanagh.
About this Research
These findings are from an Ipsos Reid poll conducted between September 18 and 22, 2014 on behalf of TD Insurance. A sample of 1,000 Canadians from Ipsos’ Canadian online panel was interviewed online. Weighting was employed to balance demographics to ensure that the sample’s composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within +/- 3.5 percentage points, 19 times out of 20, had all Canadian adults been polled.
About TD Insurance
TD Insurance offers a wide range of products to help protect customers including credit protection, auto, home, health, life, and travel insurance. With more than 4 million customers, TD Insurance authorized products and services are available through a network of more than 1,150 TD Canada Trust branches, the Internet, and telephone. For more information, visit www.tdinsurance.com.
Source: TD Insurance