Unlocking opportunity: Providing underinsured Canadians with financial security

Securing financial stability is a sought-after goal for every Canadian. But data indicates this goal is further and further away for more Canadians. According to a 2023 study conducted by the Life Insurance Marketing and Research Association (LIMRA), nearly half of Canadians say they aren’t financially secure enough to weather the death of a primary wage earner, and more than 43% of Canadians say they are very concerned about saving enough for retirement.ⁱ

“Advisors play a really important role in informing, educating and inspiring Canadians with sound guidance and custom solutions to help ensure they are financially stable,” explains Paul Savage, Head of Insurance at Manulife Canada. “When a proper plan is in place, coupled with the right products, clients feel assured that they are prepared to navigate unpredictable moments that may come their way.”

But for the 74 per cent of Canadians who say they are either uninsured or underinsured,ⁱⁱ securing financial stability is more than a goal, it is essential.

For underinsured Canadians, competing financial priorities like the rising costs of food, housing, and daily expenses can be overwhelming. These everyday pressures can make it difficult to consider insurance, yet a critical event could threaten to tip the balance. “When someone faces a difficult scenario, such as a critical illness, insurance can provide financial stability so they can focus on healing – both physically and emotionally,” says Savage. “Insurance gives people the option of putting their health first, which is a gift.”

The 2023 LIMRA study also found that 31 per cent of underinsured Canadians said the reason they don’t have life insurance is due to having other financial priorities.

There is a misconception that insurance is expensive, but premiums aren’t as high as many people think, Savage stresses. “Insurance can be affordable – it’s simply based on a person’s needs and advisors can work with clients to find protection that fits any budget. It’s much better to have some kind of protection than none at all,” he says.

He points to another approach for Canadians to save on their premiums. The Manulife Vitality program encourages policyholders to engage in healthy activities, such as exercising, eating well, and undergoing regular health screenings, in order to earn points towards lowering premiums by as much as 15 per cent. “This unique offering helps clients improve their long-term health, while giving them control over their insurance costs,” adds Savage. Vitality can support advisors in deepening relationships that may have previously been only transactional, which in turn results in earning more trust with clients.

The program is popular with clients, earning an 82 per cent satisfaction rateⁱⁱⁱ and positive feedback on how valuable the rewards can be in terms of discounts on various brands like

Apple, Adidas®, HelloFresh™ and more, while offering motivation to boost their longevity and improve overall well-being.

Newcomers to Canada can also require guidance to find the ideal insurance policy to suit their needs, Savage says. It can be challenging and overwhelming for newcomers to navigate our financial, healthcare and tax systems, but with the help and guidance from advisors, those obstacles can be hurdled with ease. “Advisors can add value by acting as a conduit to these systems and figuring out what they have in place already, such as lawyers and accountants, and providing holistic financial planning,” he says.

Savage stresses how flexible solutions can be attractive to clients from any financial position. What can begin with a term policy can end up shifting to a permanent policy. “Purchasing term insurance at a young, healthy age allows individuals to secure coverage now, with the flexibility to convert to more permanent solutions if their health changes over time,” explains Savage. “The key is to find the right solution for you and your family. Collaborating with a knowledgeable advisor ensures you are well-prepared to navigate life’s uncertainties with confidence and peace of mind.”