Rising costs and household debt aren’t the only financial risks Canadians face — many remain unprepared for the sudden shocks that could derail their income or health. A new survey from RBC Insurance finds most Canadians would struggle to cope with the financial impact of a major illness — and few have a plan in place to protect their income if it happens (1).
According to the poll, 91% of Canadians don’t have critical illness insurance, and nearly one in three say their savings would last less than six months if they faced a serious health setback. Despite growing awareness of health risks, the survey shows most households remain financially vulnerable in this regard.
“These numbers reveal a simple truth: Canadians know insurance matters, but far too many don’t have a plan in place,” Adam Mamdani, vice president at RBC Insurance, said in a statement. “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?”
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Canadians recognize the risks — but remain unprepared
While 58% of Canadians say life insurance is important, just 39% actually have a policy, according to the report from RBC, which surveyed 2,001Canadians over the age of 18. The gaps are even wider for other protection products: only 10% hold disability insurance and 9% have critical illness coverage.
This lack of preparation comes despite rising concern about chronic health issues. More than half of Canadians (57%) worry about illnesses such as cancer, stroke or heart disease, and those fears are especially high among women and younger adults.
Survey data from Statistics Canada suggests those worries are well-founded. In a survey from Fall 2022, 26% of Canadians said they would be unable to cover an unexpected $500 expense, a sign of how thin many households’ financial buffers have become.
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Myths and misconceptions fueling the coverage gap
RBC’s survey highlights confusion around how insurance coverage actually works. Fewer than half of Canadians understand that life insurance can be used for more than final expenses, and only one-quarter know that critical illness benefits are flexible, allowing payouts to be used for expenses such as rent, childcare or debt payments.
“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,” said Mamdani.
According to Statistics Canada’s recent household savings data, the average household saving rate is around around 5% for Q2 2025, well below pre-pandemic levels — suggesting many Canadians may lack the liquidity to absorb financial shocks (2).
While many of us are not eager to prepare for the potential of sudden illness or disability, experts say building a safety net now can prevent deeper hardship in the future. RBC encourages Canadians to discuss their options with an advisor and ensure their coverage aligns with their household’s actual risks.
“Without a plan, families risk financial hardship at the very moment they need security most,” Mamdani said.
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Article sources
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RBC (1); Statistics Canada (2);
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.