Across Canada, parents are increasingly stepping in to support their adult children, with nearly half of Canadian parents providing financial assistance to those between the ages of 18 and 35. This support often comes in the form of significant down payment gifts for young homeowners, with nearly 40% receiving an average of over $70,000. (
1) Many parents also help by co-signing or guaranteeing mortgages in addition to being named on student, vehicle, and personal loans or partnering with their children in business ventures.
With post-secondary debt, difficulty establishing credit, skyrocketing housing costs, and challenges in securing well-paying jobs, many young adults are reliant on their parents for support. In 2020 alone, this financial assistance totaled an impressive 10 billion dollars. (
2)
While such support is invaluable, it also presents financial risks for both parties. Life insurance serves as a crucial tool to mitigate these risks, ensuring financial security by covering debts beyond just mortgages. Given that age and health impact premium costs, securing life insurance now could be a prudent step toward protecting the future financial well-being of both parents and their children.