Canadians believe they need an average of $265,607 CAD ($236,068 USD) in life insurance coverage paid out upon their death to ensure that funeral expenses and debt are covered and that their dependents are supported financially, according to a new study from BMO Insurance.
The report indicates that the amount of life insurance coverage respondents believe they need depends on their personal situation. According to the study:
- Those who are married with children say they need an average of $320,974.
- Those who are married without children say they need an average of $290,962.
- Single individuals (without children) say they need an average of $186,629.
- Those who are single with children said they need an average of $106,517.
“The dollar amount of insurance that people need depends entirely on their personal situations — if they’re married, if they have kids, if they’re single, if they have coverage through work and so on,” say Rocco Casullo, Head, Direct to Consumer Insurance, BMO Insurance. “However, while many people tend to focus on making sure that their family is supported financially if they were to die, it’s also important to take into account that illnesses and accidents can happen as well.
“These types of unexpected events can put a tremendous amount of financial stress on both the affected individuals and their families,” Casullo adds.