CLHIA-ACCAP

Canadian Life and Health Insurance Facts -- 2018

Issue link: http://clhia.uberflip.com/i/1030763

Contents of this Issue

Navigation

Page 13 of 24

8 Life insurance Canadians buy life insurance for many reasons, but mainly to provide financial protection for their families in the event they die prematurely. Proceeds from a life insurance policy are used to replace income, pay debts, or create or add to an estate. How life insurance is purchased Canadians mainly buy life insurance on an "Individual" basis through an agent or advisor. Simpler products sold by direct mail or on-line marketing, while increasing, still only account for 1% of individual premiums. Life insurance can also be acquired on a "Group" basis through an employer or as members of an association, and is priced on the risk characteristics of the group as a whole, rather than of the individual consumer. Life insurance protection by insured household and income level Consumers choose the amount of life insurance they hold based on a number of factors: marital status, desired level of income to support dependents, outstanding mortgages, etc. As a result, life insurance protection closely reflects age and income levels. Individual 80% Group 20% 2017 life insurance premiums $21.4B Canadians own life insurance coverage 22M $4.7T - - $100K $200K $300K $400K $500K $600K Average protection per insured household Median age Median household income 60 55 50 45 40 35 NL PE NS NB QC ON MB SK AB BC CA $417,000 Average protection per insured household, up from $404,000 in 2016, approximating five times household income

Articles in this issue

view archives of CLHIA-ACCAP - Canadian Life and Health Insurance Facts -- 2018