Toronto Life Insurance 101 And Why Where You Live Matters
Your age and health are the two biggest factors that will affect how much you pay for life insurance. Where you live is also an important consideration. The average Canadian has a debt-to-income ratio of 172.3%. This number is even higher in Toronto because of higher housing prices, student loans, and higher overall living expenses.
A recent report from Borrowell found:
- Homeowners have an average debt of $608, 296
- Of this, $574,246 is mortgage debt, and $34,050 is non-mortgage debt
- Non homeowners have a debt of $17,537
Comparatively, residents have the most debt out of any other city in Canada. This also doesn’t account for loans for vehicles, lines of credit, credit cards, and other types of debt. These financial obligations will affect your need for life insurance.
A Life Insurance Example
Let’s say you are married and have three children. You own a home in the GTA and have a $100, 000 per year job. With all things staying the same, there is a good chance you have more debt than a person with a similar lifestyle to you but lives in a more affordable location in the province such as Owen Sound or Sarnia.
This means that you, as a Toronto resident, would need to buy a larger life insurance policy to ensure you are covered. It would also mean you would have a higher monthly premium.
The cost of living is not going down anytime soon, especially in large cities. So, it’s in your best interests to consider it now, even if you are single. It is more affordable. Plus, you never know when you will meet someone special and want to have a policy in place to protect them.