Canadians think they need $266K in life insurance

Canadians feel they need an average of $265,607 in life insurance coverage paid out upon their death to ensure that funeral expenses and debt are covered, finds a BMO Insurance study.

Read: A misconception about whole life insurance

This amount, however, varies depending on a client’s personal situation. For instance:

those who are married/common law with children say they need an average of $320,974;
those who are married/common law without children say they need an average of $290,962;
single individuals (without children) say they need an average of $186,629; and
those who are single with children say they need an average of $106,517.

Read: Gift life insurance, get tax credits

“However, while many people tend to focus on making sure that their family is supported financially if they were to die, it’s also important to take into account that illnesses and accidents can happen as well,” says Rocco Casullo, head, Direct to Consumer Insurance, BMO Insurance. “These types of unexpected events can put a tremendous amount of financial stress on both the affected individuals and their families.”

Read: How to handle policies you didn’t sell

Additional findings include:

65% believe that developing a critical illness or becoming disabled as a result of an accident would have a significant financial impact on their or their family’s standard of living;
55% believe it would take fewer than six months for them to start feeling financially strained if they became seriously ill or were disabled;
38% would feel financially strained within three months; and
16% of Canadians have purchased all of life, critical illness and disability insurance.

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