Despite concerns, Canadians unwilling to give up daily luxuries
- Three-quarters (74 per cent) of Canadians are kept awake at night worrying about their financial situation; this is followed by worries about their health and well-being (72 per cent) and their family’s financial security if they weren’t around to help provide for them (58 per cent).
- Despite these concerns, relatively few Canadians are willing to forego specific luxuries or conveniences when given the option of increased financial security gained through life insurance.
- Nearly four in 10 Canadians do not have life insurance, and they are significantly less likely to express confidence in their family’s ability to pay for all sorts of things if they were to pass away without insurance.
Toronto, ON (Nov. 20, 2018) – The majority of Canadians aged 25-50 are losing sleep over their finances, and as many as three-quarters (74 per cent) are kept awake at night worrying about their financial situation, according to an RBC Insurance poll. This is followed by worries about their health and well-being (72 per cent) and their family’s financial security if they weren’t around to help provide for them (58 per cent).
Caffeine fix tops financial security
But despite these concerns relatively few Canadians are willing to forego specific luxuries or conveniences when presented with the option of gaining increased financial security through life insurance. In fact, of those without coverage, as many as 21 per cent are unwilling to forfeit any of life’s little pleasures in exchange for life insurance. Of those that are willing, just over one-third would sacrifice one dinner out (35 per cent) a month, a trendy clothing item (34 per cent), buying lunch at work one less time per week (28 per cent), a bottle of wine/case of beer (35 per cent) or a daily coffee (25 per cent).
“It only takes small lifestyle changes, such as making coffee or lunches at home, or even buying one less item to afford coverage that can help Canadians sleep at night,” says Maria Winslow, Senior Director, Life & Health, RBC Insurance. “These are small sacrifices that could provide future financial security for family and loved ones should you pass away, and save them from potentially facing long-term financial hardship once they can no longer depend on your income.”
Nearly four in 10 Canadians do not have life insurance, and they are significantly less likely to express confidence in their family’s ability to pay for all sorts of things if they were to pass away without insurance, including:
- Food, clothing and other necessities (67 per cent are confident, versus 87 per cent with coverage)
- A car/transportation (60 per cent versus 75 per cent)
- Mortgage/rent/housing costs (54 per cent versus 71 per cent)
- Childcare/education (51 per cent versus 73 per cent)
Notably, more Canadians would consider purchasing life insurance if a family member suggested it (54 per cent), or if they knew their friends already had it (35 per cent).
“No matter whether they are single, a newlywed or raising a family, younger Canadians can benefit from the financial security life insurance coverage provides, for the cost of just a couple of lattes each week,” adds Winslow.
Based on these findings, what should Canadians know about life insurance?
- Life insurance works by providing beneficiaries with a tax-free benefit after the policy holder’s death. This money can help pay off loans and debts; maintain lifestyle and pay day-to-day expenses; pay for children’s education and cover expenses like funeral costs.
- While major life events such as getting married and having children motivate people to buy life insurance, Canadians need to re-evaluate their needs as their family grows and changes.
- Life insurance should be tailored to suit the budget, lifestyle and needs at every stage of life—and offer the flexibility to make changes as needs evolve.
- Life insurance is affordable and simple to purchase. It is cheaper to purchase the younger you are, an important consideration for millennials.
About the Survey
These are findings of an Ipsos poll conducted on behalf of RBC Insurance. For this survey, a sample of 1,001 Canadians between the ages of 25 and 50 were interviewed between July 17 and 19, 2018. The precision of online polls is measured using a credibility interval. In this case, the results are accurate to within ±3.5 percentage points, 19 times out of 20, of what the results would have been had all Canadian adults aged 25 to 50 been polled.
About RBC Insurance
RBC Insurance® offers a wide range of life, health, home, auto, travel, wealth and reinsurance advice and solutions, as well as creditor and business insurance services to individual, business and group clients. RBC Insurance is the brand name for the insurance operating entities of Royal Bank of Canada, one of North America’s leading diversified financial services companies. RBC Insurance is among the largest Canadian bank-owned insurance organizations, with approximately 2,500 employees who serve more than four million clients globally. For more information, please visit rbcinsurance.com.
Source: RBC InsuranceTags: RBC Insurance