By Alyssa Furtado, Ratehub.ca
Special to the Financial Independence Hub
Millennials face financial insecurity through precarious work, soft wage growth, and student debt, but they do seem to be planning ahead for financial emergencies; they’re just not turning to insurance as a safety net, according to a new survey.
A poll of 1,000 Canadians by Ratehub.ca found millennials are saving an average of 35% of their pre-tax income, with 36% of respondents stating their emergency fund is a priority. By comparison, 33% of Generation Xers and 27% of Baby Boomers said an emergency fund is one of their key savings goals.
However, Canadian millennials aren’t as likely to turn to insurance as a source of emergency relief as their generational counterparts. Just 22% of millennial renters have tenant insurance (also known as contents or renter insurance), the survey found, compared to 31% of Generation Xers and 44% of Baby Boomers. Renters aren’t legally required to have tenant insurance, but many landlords will ask for proof of coverage before the lease is signed.
Tenant insurance not only helps renters protect the value of their possessions, but it can also cover the costs of repairing damage to their rental unit and the building. For example, if a renter’s toaster catches fire and causes damage to their unit and neighbouring units, tenant insurance could help cover the cost of the damages.
Millennials less likely to have health or dental coverage
Due to the fact that many millennials work part-time, are self-employed, or have contract positions, they’re also the least likely of the three generations to have extended health or dental insurance: 23% of those surveyed said they have this coverage, compared to 28% of Generation Xers and 32% of Baby Boomers. Continue Reading…