PolicyMe, a digital life insurance innovator, surveyed Canadians to understand their biggest financial stressors and found that inflation is weighing heavily on their minds. As Canada’s inflation rate soared to an 18-year high, increased cost of living is a source of financial stress for two out of three (67%) Canadians — more than double that of any other financial stressor.
Following inflation, the top financial stressors include saving for retirement (30%), inability to absorb unforeseen expenses (25%), unpredictability of investments (25%), inability to save as much as pre-pandemic (22%), and high-interest consumer debt (17%).
The latest PolicyMe survey finds 2 out of 3 Canadians are stressed about soaring inflation rates.Tweet this
“We’re approaching the end of 2021, a year that many were looking to with optimism, but Canadians are feeling anxious about the highest inflation rate we’ve seen in a long time,” explains Andrew Ostro, CEO, PolicyMe. “Whether it’s keeping up with the rising food, fuel, or housing costs, people are stressed about the increased cost of living — and parents are feeling it the most.”
Parents of children under 18 reports being more stressed on five of the six top personal finance stressors, compared to Canadians without dependent children.
|Top Personal Finance Stressors||Parents WithChildren Under 18||Non-parents|
|Increased cost of living / inflation||68%||67%|
|Not able to save enough for my retirement||37%||27%|
|Inability to absorb unforeseen expenses||28%||24%|
|Unpredictability of investments||19%||28%|
|Inability to save as much money as pre-pandemic||25%||21%|
|High-interest consumer debt (i.e., credit cards, car loans, etc.)||19%||16%|
Financial Preparedness Can Combat Stress
For many Canadians, concerns around high costs don’t stop at the grocery store or the gas pump, they extend to important financial protections, such as life insurance. Since the pandemic began, there has been a 50 per cent uptick in the number of Canadians purchasing or considering life insurance — with 67 per cent of those citing COVID-related concerns as motivating factors.
However, of those who did not purchase life insurance, 35 per cent cited a perceived lack of affordability as the reason. This figure remained consistent from early in the pandemic (May 2020) to now, suggesting that financial concerns have not eased despite the reopening of the economy. Notably, half of parents (49%) — the demographic with the greatest need for coverage — who don’t have life insurance say they haven’t bought it because it is too expensive.
“Rising prices are a real concern, but there’s a misconception about the affordability of life insurance,” continues Ostro. “Getting covered is actually a very affordable way to ease financial stress. For roughly the cost of one takeout lunch per month, most people can afford a term policy, protecting their family financially if anything happens to them. It’s a stressful time for Canadians, but the good news is that a little planning can go a long way.”
As a new kind of life insurance company, PolicyMe puts families first, equipping them with honest and uncomplicated life insurance solutions so they can feel secure about their financial future. For tips and tools to make confident life insurance decisions, visit http://www.policyme.com.
PolicyMe is a Canadian digital life insurance solution built to make financial protection for families honest, uncomplicated, and affordable. PolicyMe makes it easy to get a quote and apply for term life insurance online in 20 minutes or less. Using technology, they’ve streamlined the traditional insurance process resulting in a fully underwritten life insurance policy that delivers the same quality protection you deserve but with fewer steps and lower costs. Based in Toronto, Canada, PolicyMe is currently licensed in Ontario, British Columbia, Alberta, Saskatchewan, Manitoba, New Brunswick, Prince Edward Island, Nova Scotia, Yukon Territories, Northwest Territories & Nunavut. For more information, please visit https://www.policyme.com.
About the Survey
These are the findings of a study/survey conducted by PolicyMe from October 7-8, 2021, with a representative sample of 1,510 Canadians who are members of the online Angus Reid Forum, balanced and weighted on age, gender, region and education. The survey was conducted in English and French. For comparison purposes only, a sample of this size would yield a margin of error of +/- 2.5 percentage points, 19 times out of 20.
About the Angus Reid Forum:
The Angus Reid Forum is Canada’s most well-known and trusted online public opinion community consisting of engaged residents across the country who answer surveys on topical issues that matter to all Canadians.