Updated: Mar 5, 2021
If you are an employed person in Canada, there is a good chance you will make the mistake in thinking you already have enough Life Insurance coverage from your employer’s group benefits package. While having group Insurance benefits is a great starting point, there are a number of reasons it is necessary to buy your own coverage.
Most Canadians require 7 to 10 years’ worth of annual salary to provide enough coverage for their family to maintain the life style they are accustomed to.
Unfortunately, an employer paid Life Insurance benefit is generally a fairly low flat amount or a percentage of income…for example 1 or 2 x salary. If you want to apply for additional coverage through your employer plan, medical
underwriting, which can be lengthy and inconvenient, is required and can be an obstacle. Also, Life Insurance provided by your employer is part of a group policy and you may or may not be able to convert the coverage and take it with you if you leave that employer.
Adding to this concern is the reality that there is still a gender pay gap in Canada, which means that coverage related to salary will leave female employees even less insured than their male counterparts. It is extremely important that all employees…especially women purchase an adequate amount of Life Insurance in order to protect your family.
A recent survey on this topic found alarming results. 90% of Canadians with dependents are dangerously underinsured with the risk of leaving loved ones to struggle in the wake of an unexpected death. The survey found the shortfall when relying strictly on an employer group policy is over $250,000.
A lack of understanding about the amount of coverage you have through an employer and how much you actually require to protect your family, has allowed a staggering number of Canadians to be under insured. There are many problems that are difficult to solve… but this issue is easily remedied in just 15 minutes. Apply now for the Life Insurance coverage you need.