Troy Woodland

By Keith Martin, Executive Director, Canadian Association of Financial Institutions in Insurance (CAFII)

As Canadians begin planning spring and summer travel outside of their home province or territory, many travellers assume that the travel insurance coverages that are included in their credit card will provide all the protection they need.

Credit cards can offer valuable travel benefits, and many include insurance coverage benefits such as emergency travel medical, trip cancellation and lost or delayed baggage coverage. Standalone travel insurance may also be offered through a variety of channels, including financial institutions, insurance advisors, travel providers and online trip booking platforms. The details of coverage can vary depending on the policy and provider.

Travelling without insurance is risky, but so is assuming travel insurance coverage exits on a credit card without fully understanding what coverages are included, what exclusions may apply, what the duration of coverage is, etc. Not understanding the durations of the coverage provided by your credit card could result in you not having coverage during what would normally have been a covered event.

Many travellers rely on credit card coverage

Credit card travel insurance is convenient. For many cardholders, the coverage is automatically included as part of their credit card benefits, which means travellers may not need to purchase a separate policy if their trip is booked using the credit card that has those embedded travel coverages.

Depending on the credit card, coverage may include insurance that provides coverage for:

• Emergency medical insurance while travelling
• Trip cancellation and interruption coverage
• Flight delay coverage
• Lost and delayed baggage protection

Because these coverages are included in the credit card, travellers may assume they provide comprehensive protection for any and all trips.

In reality, coverage may be more limited than many people expect.

Common limitations travellers may not realize

Credit card travel insurance policies, as with any insurance product, typically include conditions and limitations that affect when and how coverage applies.

For example, some policies require that the entirety of the trip be purchased with the credit card in order for certain benefits to apply. Others may limit coverage to trips of a specific length, such as 15 or 21 days. Also, a pre-existing exclusion may apply to medical conditions and/or symptoms that existed prior to your trip booking or departure.

Age limits may also apply. Some credit card travel insurance policies reduce or eliminate emergency medical coverage once travellers reach a certain age.

Coverage limits can also differ significantly from standalone travel insurance policies. While credit card coverage can provide meaningful protection.

This doesn’t mean credit card travel insurance benefits aren’t valuable. In many cases it provides meaningful protection and can help travellers manage unexpected financial risks during a trip. Understanding how the coverage works simply helps travellers determine whether it is adequate coverage for their travel specific plans.

Why reviewing coverage before travelling matters

Most trips proceed without major issues. But when unexpected events occur, such as illness, travel delays or trip cancellations, the financial consequences can quickly become significant.

Understanding what protection is in place before leaving home helps travellers avoid surprises later.

Here are some steps you could take:

• Review the certificate of insurance for benefits attached to your credit card
• Confirm whether travel purchases must be made using the card for coverage to apply
• Check the maximum trip length covered by the policy
• Review coverage limits, any age restrictions, limitations and exclusions
• Determine whether additional travel insurance may be needed.

As with any insurance product, reviewing the policy terms and coverage limits can help travellers understand whether the embedded travel insurance coverage provided with their credit card is adequate for their particular trip.

Protection starts with understanding your coverage

Credit card included travel insurance benefits can provide valuable protection and may be sufficient for many trips. But coverage varies from card to card, and assumptions about protection can sometimes lead to unexpected gaps.

Before travelling, understanding exactly what your included credit card travel insurance covers and where additional protection may be needed, is an important step in responsible travel planning.

For Canadians preparing for upcoming travel, the key question is simple: not just where you’re going, but what insurance coverage is in place to help financially protect  you if something unexpected happens either before or during your trip.

By Keith Martin, Executive Director, Canadian Association of Financial Institutions in Insurance (CAFII)

Financial vulnerability isn’t just about payments — it’s about preparedness, clarity and understanding the insurance protection you actually have.

Mortgage stress isn’t just about rates — It’s about financial resilience

Interest rates dominate headlines for a reason. They affect monthly payments, budgets, and financial planning. But if you’re worried about mortgage stress, there’s a bigger question worth asking: What would happen if your income suddenly changed?

Rates matter. But resilience, your ability to manage an unexpected financial disruption — is often the factor that determines if a household weathers a challenge or faces serious strain.

The real test isn’t your payment. It’s your buffer.

Most conversations about mortgage pressure focus on numbers: interest rates, payment increases, renewal terms.

What often gets overlooked is the cushion behind those numbers.

Many Canadians are managing their finances carefully, but CAFII research shows that unexpected income loss would create difficulty for a large share of households. For some, it would take only a few months for a temporary setback to become a major financial issue.

That doesn’t mean people are irresponsible or unprepared. It reflects a reality many households share: rising costs, complex financial commitments, and limited room for surprises.

Why financial resilience matters more than ever

Financial resilience isn’t about predicting the future. It’s about understanding how prepared you are for it.

Life rarely changes on schedule. Illness, job transitions, caregiving responsibilities, or unexpected expenses can affect income at any time. When that happens, households don’t just rely on their income, they rely on:

• savings
• flexibility
• financial plans
• and protection they understand

The key word is understand.

What do we mean by “protection”?

In this context, “protection” refers to creditor insurance, which insures credit products, such as mortgage, loans, lines of credit or credit cards and is designed to pay down the outstanding balance if a covered event such as death, disability or critical illness occurs.

Understanding how this type of coverage works, including what events are covered and how benefits are applied, is an important part of financial preparedness. 

The gap most people don’t realize they have

One of the most important findings in CAFII’s research is that many Canadians feel confident in their financial protection but are less certain about the details.

Some people aren’t sure:

• how much their coverage is for
• what situations it applies to
• or how it would support them, or those that depend on them, if something changed

That gap doesn’t necessarily mean people lack protection. It means many haven’t had reason to look closely at it yet.

But when uncertainty rises, as it often does during periods of economic change, clarity becomes essential.

Financial resilience isn’t about income level

It’s easy to assume that financial vulnerability mainly affects households with limited earnings. In reality, financial pressure can affect a wide range of Canadians.

Even higher-income households may face strain if income changes suddenly, especially when they’re managing mortgages, credit obligations, family expenses, and long-term savings goals.

Financial resilience is less about how much you earn and more about how prepared you are for disruption.

What helps people stay financially stable

When researchers look at what makes households more financially resilient, the answer is rarely a single product or decision. It’s usually a combination of factors, including:

• knowing what financial protections you already have
• understanding how long they would apply
• having a plan for unexpected income changes
• knowing where to find reliable information

In other words, financial resilience often comes from clarity rather than complexity.

A practical way to check your own financial resilience

If mortgage headlines have you thinking about your financial situation, you don’t need to overhaul your finances overnight. A few simple questions can provide valuable perspective:

• What protections do I already have?
• How long would they support me or my dependents if my income changed?
• Would they cover my current financial obligations?
• Do I know where to get accurate information if I have questions?

These aren’t questions people ask every day. Understanding the answers can make a meaningful difference in how prepared you feel.

Why this conversation matters now

Interest rates rise and fall. Economic conditions shift. Headlines change.

Financial resilience is what helps households navigate those changes.

That’s why conversations about mortgage stress shouldn’t focus only on rates and income. They should also focus on preparedness, on understanding what protections exist, how they work, and how they fit into a broader financial picture.

CAFII is the Canadian Association of Financial Institutions in Insurance. We represent and promote financial institutions in insurance and work to support an open, competitive marketplace that gives consumers expanded choice and access to insurance products and services. 

As Canada’s economic environment continues to evolve, CAFII believes clear consumer education and confidence-building must be central to the conversation.

Because mortgage stress isn’t just about interest rates.
It’s about financial resilience.

By Keith Martin, Executive Director, Canadian Association of Financial Institutions in Insurance (CAFII)

Many Canadians believe they have enough protection in place to weather a financial shock. But new national research suggests that confidence may not always match reality.

As part of a new study commissioned by CAFII, Pollara Strategic Insights surveyed more than 3,000 mortgage and HELOC holders to understand how Canadians think about protection and how prepared they actually are. Across every age group, income level, and life stage, one theme emerged: many people feel confident, but most do not know how long their insurance coverage will last.

The Confidence Gap at a Glance

Several findings point to a disconnect between how protected Canadians feel and how protected they are:

• Only 38% of mortgage holders feel confident they could keep paying their mortgage if the main income earner lost their job.
• Half could not maintain their lifestyle for six months without income.
• Many homeowners are unclear about the duration and scope of their creditor protection insurance and whether it keeps pace with their financial responsibilities as borrowing changes.

Even among people who consider themselves financially secure, the study shows that unexpected income loss could cause significant strain.

Why Confidence and Preparedness Don’t Always Match

The research highlights three key reasons many Canadians may feel more protected than they actually are.

• Emotional confidence often replaces informed understanding – Many people assume their coverage is “enough” without knowing:
  • What type of policy they hold
  • How long the benefits last
  • How coverage interacts with debt, bills, or income replacement

This is particularly true for life insurance. Most homeowners believe they have adequate coverage, yet many don’t know how long that coverage would support their household.

• Rising costs create new stress points – Even higher-income households face financial pressure:
  • 59% of those earning $120k–$250k worry about ongoing expenses
  • Nearly half would struggle to pay bills after an income loss

A bigger pay cheque doesn’t automatically translate into stronger financial protection.

• Many rely on assumptions, not conversations. While half of Canadians say they use a financial advisor, only 20% regularly discuss insurance needs. This means gaps often go unnoticed until a crisis forces them to the surface.

Why This Matters

Understanding the confidence gap doesn’t mean that homeowners need more insurance. Instead, it highlights something more important:

Every Canadian deserves a clear picture of what protection they already have — and what risks might remain.

Real confidence comes from:

• Knowing what your insurance covers
• Understanding how long creditor insurance benefits would apply to covered loan or credit payments
• Making informed choices about creditor insurance using current information about credit obligations and coverage, rather than assumptions

A Clearer Path Forward

A few simple questions can help homeowners strengthen their financial resilience:

• What insurance protection do I currently have, if any?
• How long would my creditor insurance help cover loan or credit payments if my income changed suddenly?
• Can the current insurance coverage I have in place cover the financial responsibilities I have today?

At CAFII, we believe that clarity is the foundation of confidence. Clear information about creditor insurance, including how it supports borrowers as credit obligations increase, helps Canadians better understand the role these products play in managing financial risk.

By Keith Martin, Executive Director, Canadian Association of Financial Institutions in Insurance (CAFII)

For many Canadians, owning a home represents stability, security and a step toward long-term financial wellbeing. But new national research shows that behind the scenes, a growing number of homeowners feel anything but secure.

CAFII partnered with Pollara Strategic Insights to survey more than 3,000 Canadians with a mortgage or a home equity line of credit (HELOC). The findings offer an important reality check on how prepared, or unprepared, many Canadian households are for a sudden change in income.

Many Canadians Could Only Manage for a Few Months

One of the clearest signals in the research is just how thin the financial margin is for many homeowners.

Half of those surveyed said they could only maintain their current lifestyle for less than six months if their primary income stopped. Half also said they would have serious problems paying their bills if the main income earner in their household could not work.

The survey suggests that a large number of Canadians are only a few disrupted paycheques away from difficult decisions about mortgage payments, credit card balances, groceries, or childcare.

Debt Levels Add to the Pressure

Homeownership often comes with significant debt, but the study shows just how heavy these obligations are for many families:

• An average mortgage of about $221,000
• An average HELOC balance of around $54,000
• Nearly $40,000 in additional debts such as credit cards, car loans or personal loans

With rising living costs, interest rate fluctuations and economic uncertainty, it’s no surprise that 44% of homeowners say current economic conditions are making their finances worse.

Financial Stress Reaches Far Beyond Lower-Income Households

A key insight from the study is that financial vulnerability isn’t limited to those earning less.

Even homeowners with household incomes between $120,000 and $250,000 report similar pressures:

• Difficulty saving consistently
• Managing multiple types of debt
• Worrying about job loss
• Unsure how long they could manage without income

Higher income does not always translate into higher financial resilience. Many Canadians, regardless of income, are navigating the same financial uncertainties.

A Gap Between Worry and Preparation

Perhaps the most concerning finding is the disconnect between homeowners’ concerns and their level of preparedness.

Many people fear the impact of a sudden job loss or illness, yet:

• Only about one-third feel very knowledgeable about planning for the future
• Many don’t fully understand what their current insurance covers
• A significant number don’t know how long their life insurance would last if it were needed

This lack of clarity increases stress and can leave families more exposed to risk than they realize.

What Homeowners Can Do

While no one can predict the future, small, practical steps can help Canadians strengthen their financial safety net:

1. Know your numbers: Take stock of your total debt, monthly payments, income sources and how long savings could support your household if income suddenly changed.
2. Review your safety net: This includes emergency savings, employer benefits and any insurance you already have, such as life, disability, job loss or others.
3. Ask clear, simple questions: If you’re unsure what your insurance covers, ask your financial institution or advisor to explain it in plain language, using real scenarios.
4. Map out a “what if” plan: Thinking ahead about how you would handle a job loss, illness or unexpected expense can help reduce anxiety and clarify where your gaps are.

Moving Toward Greater Financial Confidence

At CAFII, we believe that informed decision-making starts with clear, accessible information. Financial vulnerability isn’t a personal failing, it’s often the result of rising costs, unpredictable economic conditions and the realities of modern life.

By shining a light on these trends, the Pollara study aims to help Canadians better understand their situation, ask the right questions and feel more confident about protecting their households.

By Keith Martin, Executive Director, Canadian Association of Financial Institutions in Insurance (CAFII)

When Canadian homeowners think about protecting their family’s financial future, many focus on mortgage payments, savings, and day-to-day budgeting. But new national research shows that people approach financial risk very differently. Some feel well-prepared for the unexpected. Others worry about making ends meet if a job loss, illness, or other income-disrupting life event were to occur.

To better understand these differences, CAFII partnered with Pollara Strategic Insights on the first Canadian segmentation study of Credit Protection Insurance (CPI) awareness, attitudes, and behaviours among mortgage and home equity line of credit (HELOC) holders. More than 3,000 Canadians participated.

Why this research matters

While the research identified five distinct population segments, one crucial finding stands out: financial vulnerability can affect anyone, regardless of age, income, or household stability. The study highlights that:

• Half of mortgage holders could not maintain their current lifestyle for six months without their primary income.
  
• Only 38% feel confident they could keep paying their mortgage if the main income earner lost their job.
  
• Many homeowners do not feel confident that they fully understand the details of their  Credit Protection Insurance, such as when the coverage begins and ends.

These insights help set the stage for understanding the different groups of homeowners identified in the study and why protection conversations matter.

Five segments that reflect real Canadian experiences

The research identified five broad groups that capture the different financial realities and confidence levels among Canadian homeowners. These aren’t labels for individuals, but snapshots that help illustrate how differently people prepare for the unexpected.

Understanding which segment feels most familiar can help you think about your own financial resilience and the types of protection that may, or may not, fit your needs.

1. The Confident Planner
This group, representing roughly one-quarter of mortgage and HELOC holders, feels relatively secure. They typically have investments, manage their finances proactively, and think ahead to retirement. Despite their preparedness, many still carry concerns about job security or how long they could sustain their lifestyle if their income changed unexpectedly.

Why this matters: Even financially comfortable households can be exposed to risks they may not have fully considered, particularly around income loss and whether they have the right protections in place. For those without insurance, this may mean considering whether coverage is appropriate; and for those who already have it, assessing whether their existing protection is sufficient if their income were disrupted. 

2. The Anxious Realist
Anxious Realists live with frequent financial stress. They often carry higher levels of debt, feel unsure about their financial knowledge, and worry about managing bills if something went wrong. Many see value in financial protection but struggle with affordability and competing priorities.

Why this matters: This group’s financial stress and limited flexibility mean that even a small disruption could have immediate consequences. Affordability is a major barrier, so understanding which protections are within reach, and which supports they may already qualify for, can help them make informed decisions without adding pressure.

3. The Stretched Investor
Stretched Investors are in their peak earning years, often balancing multiple financial obligations such as mortgages, HELOCs, childcare costs, or secondary properties. Some already hold CPI but feel uncertain about whether it offers good value. Others simply haven’t revisited their coverage in years.

Why this matters: With multiple financial responsibilities, an unexpected income disruption could create real strain. Clear information about what Credit Protection Insurance covers, and how it helps maintain debt payments during a covered event,can help this group assess whether the protection they have, or are considering,meets their needs.

4. The Steady Builder
Steady Builders are financially engaged and focused on long-term stability. Some have CPI, some do not, and many sit somewhere in the middle, neither strongly supportive nor strongly opposed. They are cautious, and their views on insurance often hinge on clarity, trust, and how well they understand the product.

Why this matters: Many Canadians in this group are open to financial protection but want straightforward, jargon-free explanations to help them make informed decisions.

5. The Comfortable Traditionalist
This group is typically older, with more assets, fewer dependents, and greater financial confidence. They may not see CPI as necessary but remain attentive to protecting their retirement plans or maintaining stability later in life.

Why this matters: Even financially secure households can have blind spots, especially around income replacement, long-term planning, and how different types of insurance fit together.

Moving forward

At CAFII, we believe that empowering Canadians starts with straightforward, accessible information. By understanding the different experiences reflected in these five segments, consumers can better navigate their own path toward financial security, whatever that looks like for them.