Many dads don't know how much life insurance
they own: RBC Insurance Poll
Seventy per cent of Canadian fathers have a life insurance
policy, yet two-in-five don't know how much it's worth
TORONTO, June 4, 2013 - Most Canadian fathers have
a plan in place if something were to happen to them, according
to a recent RBC Insurance survey. With 70 per cent holding
life insurance, dads are making financial decisions with family
in mind, yet almost 40 per cent of them don't know how much
the policy is worth or how much their families will need.
"Dads view purchasing life insurance as the responsible
thing to do. Their top reasons for purchasing a policy include
income for their partner and children; paying off the mortgage;
and financing their children's education," said Cathy
Preston, vice-president, Life and Health, RBC Insurance. "And
it's no surprise that our survey found that it's the big life
events, such as marriage and having children that trigger
their investment in life insurance."
Almost 40 per cent of men purchased or upgraded their policy
when they got married and 76 per cent did so when they became
a father. While half of fathers estimate they hold policies
worth between $100,000 and $500,000, many dads believe they
need, on average, another $380,000 of coverage to feel secure.
"Life insurance is one of the simplest and most affordable
ways to protect the financial future of families. It's clear
from the findings that far too many Canadians don't know how
much their life insurance policy is worth, nor how much they
need," said Preston. "Today's families are busy,
so convenience and simplicity are important when purchasing
a policy. You also want to ensure that you are getting the
best value for money."
As for the 30 per cent of fathers without a policy, almost
half (44 per cent) say they have enough investments and other
financial resources, or that their household income will ensure
the family is protected.
Based on these findings, what should Canadians know about
RBC Insurance offers these tips:
- Life insurance works by providing beneficiaries with a
tax-free benefit after the policy holder's death. This money
can help pay off loans and debts; maintain lifestyle and
pay day-to-day expenses; pay for children's education and
cover expenses like funeral costs, while protecting retirement
or rainy day savings.
- While major life events, such as getting married and having
children, motivate people to buy life insurance, Canadians
need to re-evaluate their needs as their family grows and
- Life insurance should be tailored to suit an individual's
budget, lifestyle and needs at every stage of life - and
offer the flexibility to make changes as needs evolve.
- Employer-provided plans can leave families unprotected
because coverage amounts may be insufficient and may not
continue if the individual leaves the job or becomes disabled.
About the RBC Insurance Poll
The RBC Insurance Poll was conducted online via Ipsos Reid's
national I-Say Consumer Panel to 1,127 Canadians parents.
Weighting was then employed to balance demographics and ensure
that the sample's composition reflects that of the adult population
according to Census data and to provide results intended to
approximate the sample universe. Data collection was March
27 to April 5, 2013. The accuracy of Ipsos online polls is
measured using a credibility interval. In this case, the poll
is accurate to within ±3.3 percentage points of the
entire Canadian parent population.
About RBC Insurance
RBC Insurance®, through its operating entities, provides
a wide range of travel, life, health, home, auto, wealth and
reinsurance products and solutions, as well as creditor and
business insurance services, to individual and group clients.
RBC Insurance has more than four million clients globally.
We are one of the largest Canadian bank-owned group of insurance
companies and among the fastest growing insurance organizations
in the country. RBC Insurance employs more than 3,200 employees
around the globe, and is the brand name for the insurance
operating entities of Royal Bank of Canada.
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