Major gap found: Most Canadians are unprepared for the financial shock of serious illness

Despite widespread fears of major health crises, most Canadians are leaving themselves financially vulnerable by lacking critical insurance coverage, according to a troubling new poll from RBC Insurance.  

The survey highlights a significant gap between the perceived importance of insurance and the policies Canadians actually hold. 

The findings reveal that a staggering 91% of Canadians do not have critical illness insurance, even as more than half (57%) express concern about becoming seriously ill from conditions like cancer, heart attack, or stroke.  

This lack of protection is compounded by economic insecurity: nearly one in three Canadians said their savings would be depleted in just six months if they were to face a major health setback. 

The disconnect exists across multiple product lines, the survey discovered. While 58% of Canadians believe life insurance is important, only 39% have a policy.  

The gap is even wider for other protection types: only 10% hold disability insurance, despite 31% viewing it as important, and just 9% have critical illness coverage, though 29% see its importance. 

“These numbers reveal a simple truth: Canadians know insurance matters, but far too many don't have a plan in place,” said Adam Mamdani, Vice President at RBC Insurance.  

Mamdani questioned the public's priorities, noting, “People will take the time to consider a warranty on a new phone, but what about protection for their health and ability to earn an income? Without it, families risk financial hardship at the very moment they need security most.” 

Myths, lack of education keep Canadians from getting insured 

Widespread myths and misunderstandings were cited as a major barrier to uptake. Four in ten Canadians reported limited or no understanding of critical illness insurance, and few grasped the flexible nature of claims: 

• Only 26% knew a critical illness benefit can be used for any purpose, from childcare to mortgage payments. 
• Just 24% were aware that a claim can be made while they continue to work. 

Mamdani stressed the importance of education. “Many Canadians believe coverage is too expensive, or that claims won't be paid, when in reality, purchasing insurance early can lock in affordable protection for the long term.” 

RBC Insurance is urging Canadians to speak with an advisor and create a plan to ensure their families are protected in the event of serious illness or unforeseen circumstances.