Critical illness coverage gap widens as Canadian worry hits new high
Despite that growing unease, only 10 per cent of Canadians reported having critical illness insurance. The figures arrive as wealth advisors continue to grapple with the broader protection gap facing Canadian households which extends well beyond life insurance to living benefits coverage that many clients do not know they are missing.
Savings at risk, futures uncertain
For working Canadians, personal savings represent the primary fallback if a serious diagnosis interrupts their income. More than a third (36 per cent) said they expect to rely on savings, while 24 per cent anticipate drawing down retirement funds.
The problem is that those reserves are shallow: more than one-third (35 per cent) estimate their savings would be exhausted within six months if they were unable to work due to a serious illness or injury.
One in five working Canadians (20 per cent) said they simply do not know how they would cover living expenses through a six-month or longer absence from work. A quarter (25 per cent) do not know how much paid sick leave they have through their employer – a knowledge gap that carries real financial consequence.
“These findings point to a worrying gap between how concerned Canadians are about critical illness and how financially ready they are to face it,” said Farzana Damji, senior director, product strategy and performance management at RBC Insurance, in a statement accompanying the October 28, 2026 release. “A critical illness diagnosis can bring significant emotional and physical challenges; having a financial plan in place can help ease some of the added stress and uncertainty, allowing Canadians to focus on what matters most – their health and recovery.”
