Insurance Coverage Quiz.

Why most Indian-Canadian families are dangerously underinsured

Industry data shows 67% of Indian-Canadian families have less than 1× annual income in life insurance. The recommended coverage is 10× annual income. That means most families are 10× underinsured if the primary earner can't work.

For Indian-Canadian families, insurance gaps are usually because:

• Cultural taboo — talking about death/illness feels inauspicious
• Believing work coverage is enough — usually it's only 1–2× salary, and disappears when you change jobs
• Confusing term with whole life — agents push expensive permanent insurance when term is 10× cheaper for same coverage
• Forgetting about parents in India — many primary earners send INR 50k–200k/month back, with no plan if income stops
• Skipping critical illness coverage — heart attacks, cancer, strokes are #1 reason families go bankrupt

The 4 types of coverage you actually need

1. Term life insurance — primary protection

10× annual income, 20–30 year term. CAD 1M coverage for healthy 35-year-old: ~CAD 35–55/month. Most affordable + most important.

2. Critical illness insurance — bankruptcy prevention

Lump sum payout on heart attack, cancer, stroke. CAD 100k coverage: ~CAD 30–60/month. Critical for primary earners.

3. Disability insurance — income protection

If you can't work, replaces 60–85% of income until 65. Often more important than life insurance because disability is more likely than death before 65.

4. Mortgage insurance — debt elimination

Pays off mortgage if primary earner dies. Lender-supplied is overpriced; buy term life equivalent for 30% less.

Smart structure for Indian-Canadian families

1. 10× income term life on primary earner (20–30 year)
2. 5× income term life on spouse (even if not earning — childcare value)
3. CAD 100k–250k critical illness on primary earner
4. Disability insurance through employer + supplementary if self-employed
5. Add parents in India in coverage calculation if you're financially supporting them

The biggest mistake Indian-Canadian families make is thinking their work coverage is enough. When you change jobs, that coverage disappears. A personal term policy of CAD 35/month for CAD 1M coverage is the cheapest peace of mind you'll ever buy.