More than half of Canadian millennials do not have life insurance, according to TD survey
TORONTO, June 20, 2017 /CNW/ - Millennials have plenty to worry about when it comes to financial #adulting. From paying off student debt and managing day-to-day expenses to buying a house and starting a family, these new financial responsibilities can be overwhelming.
A recent survey by TD revealed another gap in millennials' financial picture: life insurance. According to the survey, more than half (55%) of millennials do not have any life insurance, although one-third have thought about it, particularly when it comes to ensuring their loved ones are taken care of should the worst happen.
"As millennials are in the midst of this new life stage, it's clear that they want to protect their families and loved ones," says Mark Hardy, Senior Manager of Direct Life & Health, TD Insurance. "But with so many other financial responsibilities it can be daunting to know where to start."
The survey revealed that these other financial priorities, including paying down their debt (25%) and saving for a house (21%), were much higher on the 'to do' list with life insurance lowest on the list.
While millennials said the top barrier to purchasing life insurance was the cost (55%), more than a third (37%) said they haven't purchased life insurance because they don't have any dependents.
"There's no doubt that getting married or becoming a parent is a key life event when people realize the importance of having life insurance," adds Hardy. "Less understood is that the younger you are when you buy life insurance, the less you'll pay for your coverage and your premiums will not increase for the term you choose."
What millennials might also find surprising is that the cost of life insurance breaks down to less than a cup of coffee a day, over a 10-year period.
"For folks starting a family – or those who already have young families or dependents - who don't yet have life insurance, now is the time to make it a priority because this is the period when your financial obligations are really growing and you need that peace of mind," says Hardy.
The survey also revealed that while most millennials said that life insurance is best to cover one-time costs, such as funerals (68%), many don't realize that it can assist with so much more. Day-to-day living expenses, mortgage payments, lost income, and student loans are all areas where having life insurance can help relieve the financial pressure on those left behind.
Figuring out how much life insurance one needs is also easy with TD's Right Fit Coverage Assessment tool.
"Before making any decisions about life insurance, it's important to start by researching your options and speaking to an insurance advisor to learn what insurance will best fit your unique situation," says Hardy. "That way you can be assured peace of mind for you and your family."
About the TD Survey
Results are based on an online survey of 1,000 Canadian adults (aged 18yrs+), conducted May 8 - 12, 2017, by Environics Research Group.
About TD Insurance
TD Insurance offers a wide range of products to help protect customers including credit protection, auto, home, health, life, and travel insurance. With more than 4.5 million customers, TD Insurance authorized products and services are available through a network of more than 1,150 TD Canada Trust branches, the Internet, and telephone. TD Insurance represents all of the personal lines insurance entities within TD Bank Group. For more information, visit www.tdinsurance.com.
SOURCE TD Bank Group