Many Canadians are ill-prepared to financially survive the recovery period following an illness or accident according to an national survey by Desjardins Financial Security.

Most Canadians polled feel that they can cover additional healthcare procedures not listed under provincial health plans. However, the survey found that 39% could face financial problems if their health deteriorates, and they are unable to work.

These individuals may have to dip into their savings or sell assets to cover costs of necessary procedures or medicine, to cope with the associated recovery period following an illness or accident lasting more than three months.

Although 72% of Canadians recognize that provincial governments are not able to pick up all the medical costs associated with an illness or injury, including recovery, 28% of the population still hold onto the belief that all costs are covered under the provincial health plans.

“Canadians must begin to think the same about healthcare planning as they do for retirement,” said Taylor Train, vice president of marketing for Desjardins Financial Security. “At the very minimum 12 million Canadians’ financial futures face life support because a proportion of the population continues to hold onto the traditional notion of universality in healthcare ‘that all will be taken care of.’ “

On a regional basis, Canadians in Western Canada and the Prairies are more likely to believe that provincial government healthcare plans will pay for all costs associated with an illness or an accident (31% for the Prairie provinces and 33% for British Columbia). Moving toward the eastern provinces, fewer Canadians embrace the notion of provincial governments covering all costs (Ontario and Quebec 26% respectively and 24% for the Atlantic Canada provinces).

Only 36% of Canadians surveyed felt that they are very or somewhat likely to be in an accident, be diagnosed with a critical illness or become disabled for a period exceeding three months during their life. In actuality, the 1985 Commissioner’s Disability Table, from the Society of Actuaries, states the risk of a 35-year old Canadian becoming disabled as a result of an injury or an illness for at least three months before the age of 65 years is 50%.

“Although the majority of Canadians are covered by a group insurance plan (51%), there is a large portion of the population that doesn’t have access to such a plan, either because they are retired without benefits, self-employed or unemployed”, said Train. “Group insurance plans at work will cover some of the expenses, but there still could be out-of-pocket expenses that need to be paid by the person making the claim,” said Train.

The poll found that critical illness insurance was only recognized by 34% of those surveyed. Long-term care insurance, which pays for constant care such as nursing assistance that is not offered by provincial health plans, was recalled by 40% of Canadians.

“Governments and individuals both need to take ownership in our healthcare solutions for the future,” says Train. “Canadians need to set money aside so that they can obtain services that government healthcare programs do not provide. Both the public and private sectors as well as individuals must complement one another to provide and secure the integrity and sustainability of our excellent healthcare system.”

SOM conducted the survey on behalf of Desjardins Financial Security between July 31 and August 24, 2003. In total, 1,999 interviews were conducted with a representative sample of Canadian adults. The sampling plan provides proportional estimates with a maximum margin of error of plus or minus 2.3% at a 95% confidence level.