Are Canadians Financially Prepared For A Serious Health Issue?

Sun Life Canadian Health Index

Key findings 

Most Canadians recognize the potential financial impact of a major or chronic health condition. Across Canada our survey found that 9 in 10 Canadians say that their personal finances would be impacted if they were to develop a major or chronic health condition. In fact, more than half (53%) say it’s possible they’d have to deal with a big, perhaps permanent, financial crisis. Only 10% of the population believes there would be no impact. See graph 1.

Despite these high awareness levels, financial preparedness is lacking. Only 58% of Canadians are either preparing, or are currently prepared financially in case they fall ill. And only 8% of Canadians have a written financial plan that addresses health-related issues such as insurance and risk management. Financial advice could help narrow this gap, but only 3 in 10 Canadians turn to an expert to help them manage their finances. See graph 2, graph 3 and graph 4.

Canadians’ understanding of the connections between health and personal finances are hard-earned. Half of all Canadians have personally experienced a serious health issue and even more, 8 in 10, have had someone close to them suffer a serious health issue. Still, fewer than 1 in 5 evaluated or re-evaluated their personal finances following the experience. In terms of health and health-related behaviours, this exposure led to a change in their attitude, but many (between 40% and 70% depending on the issue) have not changed their behaviour. See graph 5 and graph 6.

Canadians anticipate that they will have to at least partially fund their future health-care needs. The population is equally split in their belief that the government will be able to adequately fund health-care as the population ages. When it comes to medications for seniors, home-based medical equipment or long-term care, more than three-quarters of Canadians say that they expect that there will be some amount they will have to pay. Less than a quarter believe that these health costs will be 100% government funded. See graph 7 and graph 8.

Seven in 10 Canadians anticipate needing long-term care. And when it comes to illnesses like cancer, half of Canadians think they will have to share at least some of the cost of medical treatments and drug regimes. Eighty-six per cent of Canadians agree that individuals will need to purchase health insurance to help fund their health-care needs, as the public system will not be able to maintain current funding levels as the population ages and costs rise. See graph 8, graph 9 and graph 10.

Canadians who score the highest in our Canadian Health IndexTM – and in other areas related to health and well-being such as happiness with mood and energy levels – are also more likely to be those who have taken steps to prepare for their future health needs, who have a written financial plan and who seek expert advice to help manage their finances. The overall Canadian Health IndexTM score for 2011 is 68.1. See graph 11.