Three-quarters (74%) of Canadians stay awake at night worrying about their finances but only 25% would give up a daily coffee in exchange for the increased financial security of life insurance, according to survey results published Tuesday by RBC Insurance, the insurance arm of Toronto-based Royal Bank of Canada.
Nearly four in 10 Canadians aren’t covered by life insurance, the survey finds. But even so, relatively few respondents say they are willing to forego specific luxury or convenience items in exchange for life insurance coverage.
Of those who say they are, 35% would sacrifice a dinner out per month, 34% a trendy clothing item, 28% buying lunch at work one less time per week, and 35% a bottle of wine or case of beer.
“It only takes small lifestyle changes, such as making coffee or lunches at home, or even buying one less item to afford coverage that can help Canadians sleep at night,” Maria Winslow, senior director of RBC Insurance’s life and health operations, says in a statement. “These are small sacrifices that could provide future financial security for family and loved ones should you pass away, and save them from potentially facing long-term financial hardship once they can no longer depend on your income.”
Canadians without insurance expressed lower levels of confidence in their families’ ability to pay for basic needs in the event of unexpected death, including:
- Food, clothing and other necessities (67% are confident their families could cover the costs, versus 87% with coverage);
- A car/transportation (60% versus 75%);
- Mortgage/rent/housing costs (54% versus 71%); and
- Childcare/education (51% versus 73%).
“No matter whether they are single, a newlywed or raising a family, younger Canadians can benefit from the financial security life insurance coverage provides, for the cost of just a couple of lattes each week,” Winslow says.