Despite fears of serious illness, few Canadians have protection in place, leaving them financially exposed when facing health concerns
- 91% of Canadians don't have critical illness insurance, despite widespread concern
- Nearly one in three say their savings would run out in six months if they faced a major health setback
- Four in ten Canadians report limited or no understanding of critical illness insurance
TORONTO, Oct. 15, 2025 /CNW/ - While Canadians often take the time to consider protection plans for their phones, appliances and vacations, most remain uninsured against life's biggest financial shocks, according to a new survey from RBC Insurance. The findings reveal a troubling gap between Canadians' perception of the importance of insurance and their actual coverage.
While 58% of Canadians say life insurance is important, only 39% actually have a policy, revealing a 19-point gap. The disconnect is even greater for other types of protection:
- Disability insurance: 31% say it's important, yet only 10% are covered
- Critical illness insurance: 29% say it's important, yet only 9% are covered
"These numbers reveal a simple truth: Canadians know insurance matters, but far too many don't have a plan in place," said Adam Mamdani, Vice President at RBC Insurance. "People will take the time to consider a warranty on a new phone, but what about protection for their health and ability to earn an income? Without it, families risk financial hardship at the very moment they need security most."
Rising concerns, limited preparedness
Despite only 9% holding critical illness insurance, more than half of Canadians (57%) are concerned about becoming seriously ill from conditions like cancer, heart attack, or stroke. Concerns are especially high among women and younger Canadians, many of whom fear their savings would run out in just six months if illness struck.
Myths and misunderstandings are a barrier
The survey also revealed widespread confusion about how insurance works:
- Less than half (46%) understand that life insurance isn't just for final expenses
- Only 26% know that a critical illness benefit can be used for anything, from mortgage payments to childcare
- One-quarter (24%) know a critical illness claim can be made while continuing to work
"These myths and misconceptions are a major barrier," said Mamdani. "Many Canadians believe coverage is too expensive, or that claims won't be paid, when in reality, purchasing insurance early can lock in affordable protection for the long term."
It all starts with a plan
While insurance can't erase uncertainty, having the right plan can make all the difference in the case of serious illness or unforeseen circumstances. Canadians are encouraged to speak with their financial or insurance advisor to help answer a simple question: What's the plan to ensure my family is protected?
To learn more, visit rbcinsurance.com.
About the RBC Insurance Survey
These are some of the findings from an Ipsos poll conducted on behalf of RBC Insurance. The survey was conducted in English and French. A sample of 2,001 Canadians ages 18+ were surveyed online via the Ipsos I-Say panel between August 18-21, 2025. The precision of online polls is measured using a credibility interval. In this case, the results are accurate to within ± 2.7 percentage points, 19 times out of 20, of what the results would have been had all Canadian adults been surveyed.
About RBC Insurance
RBC Insurance® offers a wide range of life, health, home, auto, travel, wealth, group benefits, annuities and reinsurance advice and solutions, as well as creditor and business insurance services to individual, business and group clients. RBC Insurance is the brand name for the insurance operating entities of Royal Bank of Canada, Canada's biggest bank and one of the largest in the world, based on market capitalization. RBC Insurance has over 2,700 employees who serve nearly 5 million clients globally. For more information, please visit rbcinsurance.com.
Media contact:
Cody Medwechuk, RBC Insurance Corporate Communications
SOURCE RBC Insurance
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