Forty-seven per cent of millennials in Ontario have life insurance but under half (48.6 per cent) agree they fully understand their insurance policy, found a new survey commissioned by the Financial Services Commission of Ontario (FSCO) and released Nov. 1.
Furthermore, 61.4 per cent of survey respondents had supplementary health insurance, and of those, only 41.7 per cent agreed they fully understood their policy.
More than one-third of those who do not have life insurance or supplementary health coverage said it was due to cost.
"Most people don't want to think about what might happen if they get sick, or worse, but these are important discussions to have,” said Anatol Monid, executive director, Licensing and Market Conduct Division, FSCO in an announcement. “It is also extremely important that consumers ask questions and make sure they understand their policies, so they can make informed financial decisions that protect them and their loved ones."
The survey found that while most respondents understood words like “beneficiary”, “deductible” or “premium”, less than a third (30.5 per cent) understood “rescission rights”, for instance. Fewer than half (47.3 per cent) with supplementary health insurance understood the term “coinsurance”.
Key life milestones
“Given individuals in this age group may be experiencing key life milestones such as starting a career, getting married, having children or purchasing a house, understanding what their coverage includes (and what it does not), as well as their rights and responsibilities, is an essential part of protecting themselves and their families,” stated FSCO in the announcement.