A majority of Canadians with life insurance are relying solely on the coverage provided by their employer’s benefits plan, according to a new survey by life insurance provider PolicyMe Corp.
The survey found 62 per cent of Canadians with life insurance said they have a policy through their employer and, among those, more than half rely solely on this coverage. In addition, 53 per cent of employees without additional coverage are between the ages of 30 and 50, a group likely to have dependants and large liabilities, noted a press release.
Group life insurance is typically worth one- to two-times an individual’s annual salary, with coverage between $54,630 and $109,260 based on the current Canadian average salary of $54,630, said the release. A separate survey from PolicyMe found 24 per cent of Canadian employees without life insurance said they were considering purchasing a policy and more than two-thirds (67 per cent) of those respondents cited the coronavirus pandemic as the reason.
“We’re not saying that everyone needs to supplement their employer’s group life insurance benefit,” said Andrew Ostro, co-founder and chief executive officer of PolicyMe, in the release. “However, it’s important to stress that many Canadians aren’t sufficiently covered through work benefits alone. The key is for people to ask themselves if their life insurance will be enough to support their family if they pass away suddenly.”