The pandemic has forced many Canadians to have more frequent conversations about difficult financial-related topics, a new survey from RBC Insurance uncovered.
According to the report, 56% of Canadian respondents indicated that they are talking with their partner or family more often about topics not everyone is comfortable discussing, such as their children’s future, concerns about their finances/financial goals/debt (38%), and their family’s ability to manage financially without them.
While a majority of the respondents expressed confidence in their family’s ability to manage financially in the event they passed away without life insurance coverage, there remains a significant number of Canadians who still have reservations. About 26% said they are not confident that their family would be able to pay for mortgage/rent/housing costs if they were to pass away. Among the age groups of the respondents, those between the ages of 35 and 54 are the least confident that their family could manage to pay for things like housing costs (32%), food, clothing, and other necessities (22%), and child care expenses (33%).
“Having these conversations can be stressful, but it’s important to be as open as possible with the people close to you about all aspects of your lives together. This is an important first step to finding solutions or mitigating potential financial issues in the future,” said RBC Insurance senior director of life & living benefits Maria Winslow. “If we’ve learned anything throughout this past year, it’s that life can bring unexpected events and risks, so it’s important that Canadians also take action to protect themselves and their families.”
RBC Insurance found that 63% of Canadians believe insurance is a way to take control over unpredictable situations, noting that two-thirds of the respondents have life insurance.
But even among those with life insurance, there is a good number of individuals who do not fully understand how their coverage works. While 28% said that they have been evaluating their insurance coverage over the past year, many do not understand the different types of life insurance policies available to them. Survey responses also show that respondents have limited knowledge about key life insurance options.
RBC Insurance has recommended that Canadians continue their financial conversations with a qualified insurance advisor, review their financial goals, and create an emergency fund.
