The insurance "say-do gap": Many Canadians not protecting what they say matters most

Canadians the least prepared for unexpected disability, critical illness and long-term care needs

MISSISSAUGA, ON, Nov. 28, 2014 /CNW/ - A new survey by Edward Jones reveals that while Canadians say they value the financial well being of their families and their own quality of life in old age, many are not investing in key forms of protection to safeguard these assets.    

The survey, completed by Leger, polled Canadians on which types of insurance they've ever purchased and the results reveal that while almost two thirds (64 per cent) say they have purchased life insurance, other important forms of protection, including disability (23 per cent), critical illness (11 per cent) and long-term care (11 per cent), are purchased far less often.

While critical illness, disability, and long-term care insurance are seemingly not the top insurance priorities for Canadians, when asked to rank the top three things they would invest their money in to protect, 68 per cent ranked 'the financial well-being of [their] family' and 61 per cent ranked 'my quality of life in old age' among their top three.  Both of these things can be severely negatively affected by an unexpected illness or disability, a risk that can be offset with insurance products.

"Insurance is a crucial part of a long-term investment strategy," says James McKeown, senior insurance specialist with Edward Jones. "It's clear that Canadians want to protect the financial future of their families, but we're seeing a "say-do" gap here between intentions and actions. Insurance closes that gap, and in doing so, serves a dual purpose—it protects your family's financial security, and it protects what you've worked hard to build."

The survey also found that only one third of Canadians (32 per cent) say they have used an advisor to help them purchase insurance coverage.  According to McKeown, this might help explain the disparity between what people most value, and the action — or inaction — they take in protecting these values.

"Not involving your financial advisor in decisions about insurance is like embarking on a road-trip with only half a map—there's a good chance you'll make a wrong-turn," McKeown says.  "By creating a complete strategy together with an advisor that already knows your situation, needs, means and goals, your life's journey is much more likely to unfold as you had hoped, even if an unexpected detour occurs along the way."

Data in this news release was gathered via an online survey of a representative sample of 1,537 Canadians between September 29 and October 2, 2014. A probability sample of the same size would yield a margin of error of +/- 2.5 per cent, 19 times out of 20.

About Edward Jones

Edward Jones is a full-service investment dealer with one of the largest branch networks in Canada. It is a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund, and a participating organization of the Toronto Stock Exchange. Including its affiliate, Edward Jones serves nearly 7 million individual investors in Canada and the U.S. from more than 11,000 locations.

Edward Jones is a limited partnership in Canada and is a wholly owned subsidiary of Edward D. Jones & Co., LP, a Missouri limited partnership. Edward D. Jones & Co., LP is a wholly owned subsidiary of The Jones Financial Companies, LLLP, a Missouri limited liability limited partnership.

SOURCE: Edward Jones

Jessica Davidson, [email protected], 416-969-2714; Pira Pathmanathan, [email protected], 416-969-2765