Survey shows most Canadians lack critical coverage, risking hardship if illness or injury strikes
Most Canadians remain uninsured against life’s biggest financial shocks—even as they recognize the importance of protection, a new RBC Insurance survey reveals.
Despite 58 percent of Canadians acknowledging the importance of life insurance, only 39 percent actually hold a policy, exposing a 19-point gap.
The divide is even wider for other types of coverage: 31 percent say disability insurance is important, but just 10 percent have it; 29 percent value critical illness insurance, yet only 9 percent are covered.
This disconnect leaves many households vulnerable at the very moment security is needed most.
Adam Mamdani, vice president at RBC Insurance, stated, “Canadians know insurance matters, but far too many don't have a plan in place.” He pointed out that while people often consider warranties for new phones, they may overlook protecting their health and income.
Mamdani warned that without such protection, families could face financial hardship precisely when they need security the most.
Concerns about serious illness are widespread.
While only 9 percent hold critical illness insurance, 57 percent of Canadians worry about facing conditions such as cancer, heart attack, or stroke.
Women and younger Canadians are particularly concerned, with many fearing their savings would be exhausted within six months if illness struck.
Barriers to coverage persist, fuelled by myths and misunderstandings.
Fewer than half (46 percent) understand that life insurance extends beyond covering final expenses. Only 26 percent know that a critical illness benefit can be used for a range of needs, from mortgage payments to childcare.
Just 24 percent are aware that a critical illness claim can be made while continuing to work.
“These myths and misconceptions are a major barrier,” said Mamdani. “Many Canadians believe coverage is too expensive, or that claims won't be paid, when in reality, purchasing insurance early can lock in affordable protection for the long term.”
While insurance cannot erase uncertainty, the right plan can make a crucial difference in the face of serious illness or unforeseen events.
Canadians are encouraged to consult with their financial or insurance advisor to answer a fundamental question: What’s the plan to ensure my family is protected?
