CLHIA-ACCAP

Canadian Life and Health Insurance Facts, 2022 Edition

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14 Canadian Life & Health Insurance Facts // 2022 Edition 22 million Canadians own $ 5.3 trillion in life insurance coverage The average life insurance protection per household in Canada is $ 458,000 That's up from $ 442,000 in 2020 and approximates five times household income. Individual life coverage continues to grow Individual life insurance now equals 65 per cent of the value of total policies in-force, up from 57 per cent in 2011 – driven primarily by term life insurance. Notes Term insurance provides cost-effective, temporary coverage. Premiums typically increase over time in 5, 10 or 20 year "steps". Term insurance usually provides a right to convert to permanent insurance with the same insurer without further underwriting, providing consumers with the ability to adjust coverage features to address long-term needs. Permanent insurance – such as universal life or whole life – meets life-long protection needs. In addition to death protection, cash values are accumulated and can be used for financial emergencies, or to supplement retirement income. Premiums can be paid over a set number of years or for life. In whole life insurance, the insurer takes on both the risk related to death and the underlying investment risk. Universal life insurance allows consumers to select – and change – premium levels and investment options while the insurer assumes the risk related to death. $ 5T $ 6T $ 4T $ 3T $ 2T $ 1T 42% 34% 40% 37% 39% 37% 37% 38% 35% 40% 11% 10% 11% 12% 12% 43% 32% 11% 14% 13% 14% 13% 13% 13% 2021 2019 2017 2015 2013 2011

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