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.
