A new study commissioned by Great-West Life reveals that 55% of Canadians could not cover their living expenses if faced with a serious illness.
The researchers explained that the great majority of Canadians do not have a well thought out financial plan that could help them deal with a serious health crisis. For example, 62% of workers would go into debt, delay retirement or downsize their home to financially survive a serious illness.
“Overall, Canadians feel uneasy when considering the impact of a critical illness and have some understanding of the risk, but lack awareness of and preparedness for the financial implications,” says Kelly Swanson, Assistant Vice President, Insurance Marketing for Great-West Life, London Life and Canada Life.
The study’s findings also show that beyond financial concerns, most Canadians also feel they would be unprepared emotionally or physically if a family member was struck by a serious illness.
The research conducted by Head Research involved a survey of 1786 Canadians. Among the findings, the survey found that respondents knew very little about critical illness insurance (CI). On the first page of the study, Great-West indicates that it offers CI insurance coverage. The insurer has also created a microsite called Critical Uncovered to better inform Canadians about this type of insurance protection.