millennials do, sparking concern
November 1, 2017
Fewer than half of mature millennials aged 25 to 34 in Ontario agree they fully understand their life or supplementary health insurance policy, according to a recent survey.
Commissioned by the Financial Services Commission of Ontario (FSCO), the survey asked if they understood their insurance policy, including key terminology. While most understood common technical terms like "beneficiary", "deductible" and "premium", respondents were less familiar with other important pieces of their policy. For example, only 30.5 per cent of those with life insurance knew about "rescission rights", which gives the purchaser 10 days to return an insurance policy if they change their mind. Just under half (47.3 per cent) of those with supplementary health insurance understood "coinsurance", which requires a policyholder to pay a portion of their eligible medical expenses in addition to any deductible.
Given individuals in this age group may be experiencing key life milestones such as starting a career, getting married, having children or purchasing a house, understanding what their coverage includes (and what it does not), as well as their rights and responsibilities, is an essential part of protecting themselves and their families.
In response, FSCO has launched a series of tips, tools, games and quizzes to help millennials in Ontario understand what they need to know about life insurance and supplementary health insurance, and how to assess and select the options that suit their needs and life stage. More information can be found at www.fsco.gov.on.ca/lifeandhealth.
- 47 per cent of respondents had life insurance, and of those, only 48.6 per cent agreed they fully understand their policy
- 61.4 per cent of respondents had supplementary health insurance, and of those, only 41.7 per cent agreed they fully understood their policy
- More than a third of respondents who did not have life or supplementary health coverage cited "cost" as their top reason
"Most people don't want to think about what might happen if they get sick, or worse, but these are important discussions to have. It is also extremely important that consumers ask questions and make sure they understand their policies, so they can make informed financial decisions that protect them and their loved ones."
- Anatol Monid, Executive Director, Licensing and Market Conduct Division, FSCO
The Life and Supplementary Insurance survey was conducted online using a proprietary panel from October 10 to 18, 2017 by Strategic Communications Inc. The sample of 1000 respondents is statistically weighted to match the gender and age of Ontario mature millennials as per the most recently available census data. Margin of error is not applicable to online surveys, but a probability sample of this size would have a margin of error of +/- 3.1 per cent, 19 times out of 20.
FSCO's legislative mandate is to provide regulatory services that protect the public interest and enhance public confidence in the sectors it regulates. FSCO regulates the insurance sector; pension plans; loan and trust companies; credit unions and caisses populaires; the mortgage brokering sector; co-operative corporations in Ontario; and service providers who invoice auto insurers for statutory accident benefits claims. FSCO is accountable to the Minister of Finance.
About Strategic Communications Inc.
Strategic Communications Inc. (Stratcom) is a full service opinion research and communications firm with offices in Toronto, Vancouver, Ottawa, Edmonton and London, UK. The company has been providing strategic, political and public affairs polling and focus groups since 1991. Stratcom has been the official pollster to 24 Hours newspaper in Vancouver, and its research has been recognized by the Wall Street Journal, Maclean's Magazine, the Globe and Mail, and other national and regional publications.
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Financial Services Commission of Ontario
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