Majority of Albertan parents have life insurance but some may be underinsured
- TD Insurance poll reveals more than half of Alberta parents with life
insurance do not think they have enough coverage to support their children up
until their 18(th) birthday --
CALGARY, Nov. 26, 2012 /CNW/ - Making sure your kids are doing their homework,
eating their vegetables and not hanging out with the wrong crowd - being a
parent can be a stressful job. According to new research from TD Insurance,
parents in Alberta worry most about how their kids are doing in school (73%)
followed by their financial security (72%), and health (71%).
"As a dad, I know that worrying comes with the territory. You're constantly
thinking about how you can protect your kids and make sure that they're living
the best lives possible," says Dave Minor, Vice President, TD Insurance. "One
way to help minimize the 'what if' and ensure your children will be
financially protected if the unexpected happens, is by making sure you have
enough life insurance."
Nine-in-10 Alberta parents agree that knowing they have the right amount of
life insurance would give them peace of mind that their children would be
financially secure in the event that something happened to them or their
partner. In fact, Canadian parents who understand what protection their life
insurance offers are less likely to be quite worried or extremely worried
about their children's financial security in comparison to those who don't
understand their coverage (34% versus 42%).
Most parents have life insurance, but more than half don't think they have an
TD Insurance found 94% of Alberta parents surveyed have life insurance.
However more than half (59%) don't think their policy will leave enough money
to financially support their children up until their 18(th) birthday.
"New shoes, hockey equipment, braces and class trips - raising a child to the
age of 18 costs close to a quarter-million dollars(i)," says Minor. "No parent
wants to think about the worst-case scenario, but it's important to think
about what it will take to maintain your family's lifestyle."
Minor recommends parents consider the following expenses as they crunch the
numbers to calculate how much coverage they need:
-- Your current debts: By purchasing enough life insurance to
cover your mortgage and other personal debts, you can ensure
your important assets, like your home, are retained by your
-- Final expenses and taxes: Consider funeral expenses plus any
tax you may owe following your death, such as capital gains tax
or inheritance tax. Your insurance should cover these expenses
without having to sell any important assets like your home.
-- Child care and education costs: A four-year post-secondary
degree away from home can cost up to $84,000(ii), so it's
important you consider this cost. If you have young children
and are the stay-at-home spouse in your relationship, you'll
have to consider additional childcare expenses, too.
-- Ongoing income for your family: Determine how much you wish to
provide for your family in your absence to help them maintain
their current lifestyle. Even smaller costs, such as sports
activities can really add up.
For parents in Alberta who do not own life insurance, 38% hadn't thought about
it yet, 25% don't think it's necessary and another 13% say it's because they
can't afford it.
"Life insurance doesn't have to cost a fortune. One of the advantages of
purchasing life insurance early in life is that it is more affordable since
premiums are based on life expectancy, which naturally decreases over time,"
says Minor. "For example, a healthy (non-smoker) 35 year-old female could
typically obtain term life coverage worth $100,000 for as little as $11 per
Visit the new online tool from TD Insurance to help you understand how much
coverage you need, the different types of life insurance available to you and
estimate your costs at: http://www.tdlifeguide.ca.
About the TD Insurance Poll
TD Insurance commissioned Environics Research Group (www.environics.ca) to
conduct an online custom survey of 1,018 Canadian parents with children of any
age living at home, including 133 respondents in Alberta. Responses were
collected from October 4 to October 11, 2012.
(ii) TD Economics,
(iii )TD Insurance,
Liz Christiansen / Caitie Wallman Paradigm Public Relations 416-203-2223
Samson Yuen TD 416-308-8905 email@example.com
SOURCE: TD Insurance
To view this news release in HTML formatting, please use the following URL:
CO: TD Bank Group
NI: INS ECOSURV
-0- Nov/26/2012 13:30 GMT
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