For us, Life Insurance Awareness Month is all about helping Canadians better understand life insurance and the important role it can play in protecting their families’ financial security. Life moves quickly, and circumstances can change over the years, so it’s worth taking the time to periodically reassess coverage needs.
According to a study by LIMRA and Life Happens, 57% of Canadian adults report having life insurance coverage, up three percentage points from a similar study conducted by LIMRA in 2019. And a 2023 Canadian Insurance Barometer study, found that 31% of Canadians, approximately 8.4 million adults, say they need life insurance, or need additional coverage.
This coverage gap can leave families vulnerable to financial hardship. Four in 10 Canadians say their families would face financial difficulties within six months if the primary wage earner died unexpectedly. Another one-quarter say they don’t know how long their families would remain financially stable.
To help more Canadian families get the life insurance coverage they need, we’ve been taking a closer look at our product offerings and exploring ways to enhance them.
We sat down with one of our knowledgeable, zero-commission agents, Heather, to hear what she’s learned from conversations she’s had with people who are looking for affordable, flexible protection and what she thinks could make it easier for more people to get the coverage that’s right for them.
Teachers Life: When you’re talking to people who are interested in getting life insurance, or adding to the coverage they already have, are they running into any roadblocks?
Heather: Yes, absolutely. Especially in the times we’re in now — everything is so expensive; frankly, life is expensive. For example, there are people just starting new mortgages in their 50s who want to make sure they’re protected should something happen to them, which requires larger coverage amounts that last longer.
Teachers Life: And for educators who have spent so much of their time focused on work and their families, I’m sure insurance can easily get pushed down the to-do list. What else are people telling you?
Heather: Educators tend to have good life insurance coverage through work, which is wonderful — but I don’t think many people realize that once they stop working with their unions (whether they leave or retire), they no longer have that coverage. As a result, some people don’t even think about purchasing an individual life insurance policy until they’re older, which can limit their options. Others may have had a health or lifestyle change during their working years that affects their eligibility for life insurance. And as I mentioned, with the cost of living so incredibly high now, if people haven’t prepared, those left behind may not have the amount they need.
Teachers Life: So, it sounds like expanding eligibility ages and coverage amounts, and potentially extending the maximum expiry age, could help more people get the protection they need?
Heather: Absolutely — increasing eligibility ages, providing coverage for longer, and offering larger coverage amount options could definitely help more people get the coverage they need to protect their loved ones left behind.
Teachers Life: Thank you, Heather, for the valuable feedback.
We’re listening to what Canadians are telling us, and we’re taking those conversations to heart. That’s why we’re working on enhancements to our term life insurance products, designed to help make meaningful financial protection available to more people, for longer. Stay tuned: we’ll be sharing more about what’s coming soon.
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