Insurance – only two thirds of Canadians have life insurance


Most people have insurance for their motor vehicle and home, but many fail to cover their most valuable assets, their life and potential loss of employment income.

This statistic is disturbing, given the risk that those without insurance face. Equally important is that life insurance owners occasionally monitor what they own and whether it still fits. We must review it against our original goals and update this as our life circumstances evolve.

Despite the typical Canadians’ risk averse nature, many are leaving themselves open to unnecessary financial risk and worry, a TD conducted poll suggests.

This Risky Business Poll revealed that the majority of Canadians claim to be cautious and risk-avoiders (55%), with only 8% saying they are risk-takers. However, the same poll finds that 3-in-10 Canadians don’t have life insurance and 6-in-10 don’t have critical illness insurance.

Canadians are however in better shape on this than Americans. In the US ownership of individual life insurance has hit a 50-year low, according to a new LIMRA study. The Trends in Life Insurance Ownership study, conducted every six years by LIMRA, found that only 44 percent of U.S. households have individual life insurance.

Of the 31% of Canadians who do not have life insurance, 40% say they don’t think it’s necessary, 23% admit they probably should have it and another 23% feel they can’t afford it. Additionally, one-third of Canadians worry they aren’t adequately protected by their insurance policies.

When asked what life events have changed their appetite towards risk, the top answer from Canadians was having children (48%), followed by buying a house (23%) and getting married (18%).

Reference: Results for the TD Risky Business Poll were collected through an Environics Research Group telephone omnibus, conducted October 27 – November 11. A total of 1,500 completed surveys were collected with Canadian adults.

At TriDelta we pride ourselves on our expertise and servicing of insurance. Please contact us to discuss your needs even if it’s simply to review your existing policies and how they fit into your current lifestyle.

By Anton Tucker – Vice President.

If you have questions or want to discuss your personal situation, please call Anton at 905-901-3429 or email him at

Critical Illness Insurance or Long-term Disability Insurance?

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Long-term disability insurance and critical illness (CI) insurance are both types of living benefits  insurance Canadians set up to protect themselves, their families and their financial assets in case of physical hardship. The two are easy to confuse, but they address different needs and hardly overlap. Here are some of the frequently asked questions about the two types of Living Benefits:

What exactly is Long-term Disability insurance?

Long-term disability insurance is designed to replace your income from employment or self-employment. It pays out a monthly benefit, typically a percentage of what you earned before becoming disabled. The benefits may last for a few years – and possibly until you’re ready to retire, if you can’t go back to your own job or any job.

What is Critical Illness insurance?

Critical Illness insurance is a product that pays out a tax free lump sum in the event that someone acquires a critical illness like cancer, heart attack or stroke, to name a few. The money can be used to travel to the U.S. or elsewhere for treatments, cut back at work, pay off debts, take a sabbatical, fund home care. It is flexible. If you stay healthy and have the right product, you can even get back every premium dollar.

What is the difference between Long Term Disability (LTD) Insurance vs. Critical Illness (CI) Insurance?

Which one is better for me: Long Term Disability Insurance or Critical Illness Insurance?

The answer is dependent on your personal life circumstances; statistics show that since more people are likely to get cancer, heart attacks or strokes – the major illnesses covered by CI – than to become and remain disabled for more than six months, CI tends to be a more popular product choice. If a Critical Illness occurs prematurely, the insurance benefit will be significant considering it was not funded for a long period of time – which is what this coverage is essentially for.  If you live a full life, the option to have all premium dollars returned is there and can be incorporated into your retirement years.

To calculate the amount of critical illness insurance you might need, try out the free RBC Critical Illness Insurance calculator.