According to a recent national survey conducted by Ipsos Reid for TD Insurance, four out of ten Canadians do not know what they would do if they were sick and without an income for six months.
While 39% of respondents said they had no idea how they would pay for their expenses if they were without an income for six months, the survey found that this number increased to 44% for those under the age of 35.
For those who considered themselves more prepared to deal with this kind of emergency, 43% indicated that they would have to use their savings, while 12% said they would have to borrow from family or friends. Finally, another 10% said they would consider selling their home.
When asked how much money they would require to cover their expenses for a year, survey respondents said they would need an average of $45,609 in savings. TD Insurance points out that this is just below the national average pre-tax salary reported by Statistics Canada. Those with children believed they would need an average annual income of $53,438.