{"id":22560,"date":"2024-10-03T19:13:49","date_gmt":"2024-10-03T19:13:49","guid":{"rendered":"https:\/\/www.insurance-canada.ca\/?p=81837"},"modified":"2024-10-03T19:13:49","modified_gmt":"2024-10-03T19:13:49","slug":"life-insurance-policyholders-across-canada-lack-sufficient-coverage-heres-how-much-you-need","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2024\/10\/03\/life-insurance-policyholders-across-canada-lack-sufficient-coverage-heres-how-much-you-need\/","title":{"rendered":"Life Insurance Policyholders Across Canada Lack Sufficient Coverage: Here\u2019s How Much You Need\u2026"},"content":{"rendered":"

Toronto, ON (Sept. 24, 2024) \u2013 Canada now has the highest household debt-to-income ratio among G7 countries, reaching over 180%. This debt burden is particularly alarming in the context of rising costs of living and high interest rates, with nearly half of all mortgages in Canada due for renewal in 2024 and 2025. In light of these financial realities, more and more Canadians turn to life insurance as a tool of financial protection. According to the most recent report by the Canadian Life and Health Insurance Association (CLHIA), 22 million Canadians currently own life insurance policies amounting to $5.5 trillion in coverage. While the average household life insurance protection in Canada is $474,000, the question remains: is that enough to cover one\u2019s debts and financial obligations?<\/p>\n

To address this critical issue, MyChoice, a leading insurance comparison platform in Canada, conducted a study to analyze the adequacy of life insurance coverage across Canadian provinces. To provide a comprehensive estimate of the life insurance coverage required for Canadian households, the team at MyChoice analyzed both household income and financial asset data across all the provinces. The team then compared the \u201crecommended coverage\u201d amount with the average coverage per insured household in each province as outlined by the CLHIA.<\/p>\n

MyChoice\u2019s findings reveal a troubling trend \u2013 people in BC, Ontario, Alberta, Quebec and Newfoundland don\u2019t have enough life insurance to cover their expenses. In British Columbia, households are under-insured by 27.5%, and in Ontario, by 23.6%. Even in Alberta, which has a higher average income, families are under-covered by 19.4%. On the other hand, provinces like Manitoba and Nova Scotia fare better, with minimal coverage gaps or even slight over-insurance. However, the national picture remains concerning: the average Canadian household may not be adequately prepared to handle their financial obligations in the event of an unexpected death.<\/p>\n

For example, in British Columbia, where the cost of living is particularly high, the average needed coverage is $704,700, yet households are insured for only $511,000, leaving a gap of $193,700. Similarly, in Ontario, the required life insurance amount is $659,600, but the average coverage is $504,000, resulting in a shortfall of $155,600.<\/p>\n

<\/a><\/p>\n

Recommended vs Current Life Insurance Coverage per Insured Household in Canada ( My Choice Financial, Inc.)<\/p>\n<\/div>\n

Aren Mirzaian, CEO of MyChoice, emphasizes the importance of reviewing life insurance policies: \u201cMany Canadian families are unaware that their current life insurance policies may not provide enough protection, especially with the rising costs of living and increasing mortgage debt,\u201d says Mirzaian. \u201cIt\u2019s crucial to regularly reassess your coverage to ensure that your family is fully protected financially. Life insurance is not just about covering your mortgage \u2013 it\u2019s about securing your family\u2019s future and providing peace of mind during difficult times.\u201d<\/p>\n

To view the complete table of provinces with calculations and methodology, visit the MyChoice study<\/a>.<\/p>\n

About MyChoice<\/b><\/h4>\n

MyChoice is a Toronto-based Insurtech company that equips brokers and insurance companies with tools they need to excel in operations and client acquisition. Their rate comparison site MyChoice.ca, gives Canadians access to competitive auto, home, and life insurance rates. MyChoice blends their industry knowledge with cutting-edge technologies to build solutions that significantly enhance brokerage and insurance company processes and workflows. For more information, visit www.mychoice.ca<\/a>.<\/p>\n

SOURCE: My Choice Financial, Inc.<\/em><\/p>\n

Tags: Life Insurance<\/a>, MyChoice<\/a>, survey<\/a>, tips<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Toronto, ON (Sept. 24, 2024) \u2013 Canada now has the highest household debt-to-income ratio among G7 countries, reaching over 180%. This debt burden is particularly alarming in the context of rising costs of living...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[1],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/22560"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=22560"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/22560\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=22560"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=22560"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=22560"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}