According to a recent study by leading online insurance brokerage PolicyAdvisor, 44% of Canadians plan to buy or have bought life insurance due to the pandemic.
That study also shows many Canadians are making the same incorrect assumption about life insurance — and it could cost them in the long run.
How are Canadians wrong about life insurance?
The research from PolicyAdvisor found that 64% of Canadians believe life insurance is one of the most important types of coverage during the current pandemic, while 63% said owning life insurance is more important to them now than it was before COVID-19.
But the study also indicated that some people who want life insurance more than ever may be holding off on actually getting it: The research found that the top issue preventing Canadians from purchasing more life insurance coverage amid the pandemic is the fact that many believe it can’t be bought online.
“Many Canadians still feel helpless when it comes to comparing and buying life insurance, especially in the age of social distancing,” says PolicyAdvisor founder and CEO Jiten Puri. “Thankfully, with a digital broker you can do your life insurance application online, with easy-to-understand product descriptions, and transparent price comparisons.”
The truth is life insurance is very much available online. PolicyAdvisor itself has an online tool that helps Canadians find an affordable life insurance policy by comparing coverage and prices across multiple providers.
Life insurance is likely less expensive than you think
Another thing that young Canadians in particular seem to get wrong about life insurance is that it’s too expensive.
A 2017 study found that perceived cost was the primary barrier for millennials when it came to life insurance, with 55% of respondents giving that as the reason they didn’t have a policy.
But interestingly, a recent study from PolicyMe found that almost half of respondents (49%) had purchased pricey permanent plans when cheaper policies were available.
The perception, apparently common among younger Canadian adults, that life insurance is too costly may therefore be due in part to the fact that some policyholders have been sold expensive coverage they don’t actually need.
If you’re confused, get some good advice
You don’t have to figure this all out on your own. Professional advisors who are ready and willing to answer your questions.
If you’re in the market for life insurance, Sun Life Financial advisers can help you figure out what kind of policy will match your needs and budget. You don’t have to pay anything to meet with an adviser.
These are uncertain times, but the truth is that a life insurance policy is worth having no matter what’s going on the world.
And getting a policy might not be nearly as difficult as you think.