While 74 percent of Canadians have life policies, 70 percent are not confident their coverage is adequate.

A large majority of Canadians own life insurance, but most remain uncertain about whether their coverage levels are adequate, according to new research. BMO Insurance, a unit of BMO Financial Group, discloses this finding in an online survey of 1,005 adult Canadians. The research was conducted by Pollara between July 2nd and 4th, 2014.

The report reveals that while 74 percent of Canadians have individual or (through their employer) group life insurance policies, 70 percent are not confident their coverage is adequate to care for policy beneficiaries in the event of an insured’s death.

The study also reveals that nearly 9 in 10 (88 percent) of Canadians are not well acquainted with the types of life insurance options available to them. This finding may contribute to the low levels of confidence they express about coverage.

More than 6 in 10 (63 percent) of survey respondents say the “right time” to buy life insurance is as soon as one can afford coverage so as to secure low premium rates.

The study also examines the top reasons why Canadians get life insurance:

  • They do not want to burden their family financially after death (53 percent).
  • They have a sense of responsibility to buy it (49 percent).
  • They were told by family and/or friends that they should have it (16 percent).