According to a recent study, 44% of Canadian households own individual life insurance, compared to a majority of households (55%) in 2006, but up slightly from the 43% of Canadians who owned it in 2013. LIMRA began collecting data on life insurance ownership among Canadians in 1982. The 2019 Canadian Life Insurance Ownership Study — Individual Life Insurance Report provides updates on historical trends and profiles of the life insurance market in Canada. While the individual life ownership rate has declined since 2006, the number of households that own individual life has increased. Currently, 7 million households own individual life, suggesting growth of 1.2 million households (21%)...
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Life insurance is essential for those who want to prepare for the unexpected. It serves as a cushion to surviving loved ones who will be left with the impact of an individual’s sudden passing, primarily financial. When that happens, beneficiaries usually get a tax-free lump sum from the life insurance company. Canadian life insurance statistics reveal that just under half (49%) of Canadians with dependents have never purchased life insurance. On top of that, many of those who do have insurance were underinsured. This trend is quite worrying, especially in our trying times. In the event of accidental death, it’s more important than ever to secure the future of our loved ones. Let’s look at...
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Inflation is “a slow and silent killer” in how it erodes the value of money. That’s how Michael Aziz (pictured), chief distribution officer at Canada Protection Plan (CPP), a Foresters Financial Company, described the impact of the current economic squeeze on Canadians. A recent LIMRA study found that nearly one third of US retirees report their basic living expenses are more costly today than they had anticipated, with eight in 10 respondents blaming inflation for this discrepancy. The situation is similar for ageing citizen and retirees in Canada, where inflation hit 8% in June, a record since 1983. “Your dollar doesn’t go as far as it used to, so you have to...
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Life insurance isn’t usually top of mind for Canadian retirees focused on generating income from their investment portfolios. Yet certain types of life insurance can play an important role in the lives of older Canadians, especially when it comes to leaving money to children or charities. “People often say, ‘The kids are out of the house. I no longer have a mortgage, and so why would I pay a premium for coverage for life insurance?’” says Christopher Dewdney, a certified financial planner at Dewdney and Company in Toronto. “But that’s a misconception.” Many Canadians are familiar with term life insurance – which lasts for between one to 50 years depending on the policy – and accounts for...
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WINDSOR, Conn., Nov. 12, 2019 — A recent LIMRA study revealed that 12.6 million Canadian households own life insurance coverage, an increase of 3.4 million over the past six years. This marks the highest level of ownership to date in Canada. Over the past 37 years, the number of Canadian households with life insurance coverage grew from 7 million to 12.6 million, an increase of 81%. These are some of the key findings from the 2019 Canadian Life Insurance Ownership Study—Household Trends Report, which monitors long-term patterns in life insurance ownership, adequacy of coverage and consumers’ attitudes about life insurance. In the latest study, 1 in 4 Canadian households...
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Corporate-Owned Life Insurance Life Insurance: Why would a business owner want it? The traditional perception of life insurance is that it is a financial product providing income replacement at death, funding tax liabilities, partnership buyout agreements, covers key people in an organization or is used to equalize an estate. Most ultra-high net worth Canadians are sufficiently self-insured by virtue of their assets. They feel, and rightly so, that they don’t need insurance for traditional risk mitigation purposes. That said, corporate-owned life insurance can be used by wealthy individuals as a tax effective way to accumulate passive wealth inside a company, to access that wealth tax...
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Life insurance may be one of the most important purchases you make. If you think a policy is too expensive, or your employer-offered insurance is enough, think again. When Jill’s husband died just a few months ago, filing life insurance claims was not on her list of priorities. His death from cancer wasn’t a surprise, but living the rest of her life without him was overwhelming. Her son took the reins and filled out the paperwork to claim the tidy sum that would help to cover funeral expenses, and a little extra for the family. “We never really talked about life insurance,” says Jill. “We kept our finances completely separate, but I know he had a term policy. Our home is paid for, and I’m...
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The current state of the economy is less than ideal, with increasing debt and house prices steering many consumers away from the insurance products that they need the most. In a recent survey from Goose Insurance, 52% of Canadians said they still do not have life insurance despite the fact that internet searches for term life insurance increased nearly 50% from 2019 to 2021. It was also reported that those surveyed said they have not got insurance due to the burdensome process of purchasing and medical exams, as well as affordability. In response to the survey, Goose has launched Canada’s first term life insurance policy that can be purchased through its app, with up to $1 million in...
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More than half of Canadians with group life insurance have no other coverage: survey Sixty-two per cent of Canadians who have life insurance get it through their group benefits plan at work and a majority of them have no other coverage, a recent national survey shows. The poll, conducted through the Angus Reid Forum for digital life insurance platform PolicyMe, also found that 53 per cent of those without additional life insurance coverage are between the ages of 30 and 50, “a group most likely to have dependents and large liabilities, such as a mortgage.” If you’re like most people, life insurance is meant to help your family cover the bills without your income, should...
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Protect your finances as a Canadian newcomer with insurance Here's what you need to know about insurance as a newcomer to Canada. One of the most important things you can do as a Canadian newcomer is to set up your finances right away. This includes getting your insurance in place so that you’re financially protected in case of an emergency. Here’s everything you need to know to start the insurance process for your health, home, vehicle and life. Applying for health insurance as a newcomer One of the greatest perks about moving to Canada is the wonderful universal health care system. Canadian residents receive public health care, which means most health care costs won’t...
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