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Nearly 60% of Canadians worried about inflation, cutting back 2022 spending plans: survey

Thursday, December 9, 2021 8:00:00 AM

- survey shows 63% of Canadians plan on saving more; life insurance stays in the budget. -

Research from Canada's leading online insurance brokerage finds that only 48% of Canadians feel their insurance coverage adequately protects their families from the financial impact of death or illness from COVID-19. While the survey found consumer budgets will be trimmed across the board in 2022, life insurance will be spared from the cutting floor. The company's State of the Nation: Life Insurance Trends 2021 examines Canadians' changing attitudes towards saving, spending, and life insurance in a post-pandemic economy.

Over half of Canadians surveyed (59%) are concerned about the rising costs due to inflation and expected increases in interest rates. Job security is another top concern for Canadians (14%) looking at a stalled economy. The survey results reflect short-term concerns many have as they return to the workforce in the new normal.

"Canadians know they are going to feel some pain in their pocketbooks in the next 12 months," said Jiten Puri, CEO and Founder of PolicyAdvisor. "But, it's the immediate uncertainty of pricing, be it grocery bills or mortgage rates, that is top of mind, and may lead to across-the-board spending cuts."

Faced with COVID-related budgeting decisions for a second year, Canadians plan on cutting spending on entertainment (51%), travel (43%), and clothing (42%). Life and health insurance is considered the least expendable discretionary spending category as Canadian insurance owners worry about their family's protection through the ongoing pandemic.

More than half (52%) of Canadians feel uncertain that they have adequate financial protection for themselves or their loved ones should they be stricken with a COVID-related sickness or death. Those that haven't purchased life insurance primarily (45%) worry about the cost of buying coverage. While vaccination status does not have any impact on life insurance availability or its pricing, many in fact are hoping for discounts based on vaccination status to make life insurance more affordable!

SOURCE: PolicyAdvisor