By Kate McCaffery, Insurance Portal
New research conducted by Pollara and commissioned by the Canadian Association of Financial Institutions in Insurance (CAFII) makes a number of findings – about Canadians’ concerns about job loss, their insurance coverage and where they get their information – and notes that financial professionals are often advising Canadians against the use of credit protection insurance (CPI).
The July 2025 survey of more than 3,000 mortgage and home equity line of credit (HELOC) holders found that half could maintain their lifestyle for less than six months without their primary income. The Credit Protection Insurance (CPI) Segmentation Study “reveals widespread financial stress alongside troubling gaps in protection confidence, even among those who already have insurance coverage,” they write.
Notably, 57 per cent said they have concerns about job loss in the next 12 months. They say concern is highest among
younger adults, households with children under 18, immigrants coming to Canada within the last nine years and those in Quebec.
The research looks at the average mortgage held (over $200,000) and when mortgage holders expect to have this debt paid off.
Confidence may be more emotional than informed
Regarding insurance uptake, they say few considered insurance to be unimportant, but only half said it was very important. “A majority had life insurance, often provided by employer benefits. While more feel they have enough insurance, this confidence may be more emotional than informed, as many can not say how long it would last,” they write.
The report also looks at personal financial concerns, how often survey respondents made payments into savings, debt, investments and time horizons and financial literacy. It additionally looks at advisor usage and at clients’ sources of information.
“Knowledge is highest when it comes to managing money and debt, but lower when it comes to planning, investing or insurance. That said, less than half feel very knowledgeable on any topic,” the report states.
30% held creditor protection insurance for mortgage
About three in ten held CPI for their mortgage while roughly one in five held it for their HELOC. “Research found that 48 per cent of non-holders were advised against CPI by financial professionals, highlighting that consumers may be receiving mixed messages and need better support in making informed choices.”
They also say the majority of survey respondents had life insurance but coverage varied by source: 47 per cent had it through employer benefits while 41 per cent said they had a personal policy. “Among those insured, term (24 per cent) and whole life (23 per cent) are most common, while one in four (25 per cent) are unsure what type of policy they hold,” they note.
