How financially prepared are you for a serious illness? According to Sun Life’s Canadian Health Index, most of us are woefully unprepared.
The survey found that nine out of 10 Canadians anticipate a negative financial impact if they were to experience a major or chronic illness, with 53% saying that impact would be significant or perhaps permanent.
Yet, despite Canadians’ awareness, only 58% said they are preparing or are currently prepared to deal with the financial ramifications of illness. And only 8% of respondents said they have a written financial plan that includes insurance and risk management.
“Canadians’ understanding of the connections between health and personal finances are hard-earned,” says Kevin Strain, senior vice-president, individual insurance and investments with Sun Life Financial Canada. “We found the majority of Canadians have either personally experienced or have had someone close to them suffer a serious health issue. However, fewer than one in five said they had evaluated or re-visited their finances following the experience.”
Of those surveyed, 86% said they will need to purchase health insurance to help fund their healthcare needs and that the public system will not be able to maintain current funding levels as the population ages and costs rise.