In a previous blog, we outlined the cost of living in Toronto and why it’s prudent to buy insurance when you’re young. Today, we’re going to focus on Ontario as a whole. While monthly bills tend to cost more in Toronto, Ontario can still be an expensive province to live, particularly when compared to the rest of Canada. And with Ontario being such a desirable immigration spot, costs won’t be coming down.
All Ontarians should expect inflation of approximately 2% every year. That means that on average, all Ontarians will spend 2% more on everything from year to year. And unfortunately for most of us, wages do not automatically increase to match inflation. Our advice: if you live in Ontario, you should buy life insurance now while premiums are relatively low.
Cost of Living in Ontario
The following costs are averages between London and Burlington, two growing cities in Ontario. If you’re living alone in these cities and spending the barest of minimums, it costs around $1500 per month for rent, utilities, groceries, and transportation. If you have a child, add in another $400 per month. Here’s the breakdown by expense:
According to stats from expatisan.com and numbeo.com, average rental costs are $1100 per month for a studio apartment.
Utilities are non-negotiable expenses that will set you back $150 every month (this only includes electricity, natural gas, and water – internet and phone data plans will cost you extra).
A single man or woman living in Ontario will pay $50 every week for groceries. This adds up to around $200 per month.
A monthly public transit pass for a single adult will cost you ~$80. If you have a car, expect to pay approximately $500 per month in gas, vehicle payments, insurance, and maintenance.
Internet & Data
Your grandparents might not agree, but staying connected is a necessity for anyone living and working in Ontario. Data plans cost $80 month on average. Add another $75 for the high-speed home internet.
Toronto has some of the highest taxes in North America. Federal taxes start at 15 percent, and provincial taxes start at 5 percent. Combining all taxes together, the average Ontario family spends around 42 percent of their income on taxes. And don’t forget about sales tax: Ontario’s HST is 13% on nearly all purchases.
You Should Buy Life Insurance when you’re Young
The expenses we outlined easily take up 50% + of entry-level monthly wages. If you’re single with no dependents, it’s live-able. But if you have a significant other, a child, or even a pet, budgets get tighter, and a loss of wages due to sickness or death can leave a family reeling. Thankfully, insurance rates are low when you’re young and healthy and can help protect your loved ones should something happen to you.
Don’t wait too long to get coverage – the older you get, and the more bad habits you pick up, the more insurance will cost you. Consider the following habits/conditions and their impact on insurance premiums:
You’re a Smoker – Increase of 200%
You’re a Drinker – Increase of 50%
Your Family Has Medical History – Increase Of 50 – 250%
History of Depression – Increase of 50 – 200%
Poor Physical Build – Increase Of 5 – 200%
Poor Driving Record – Increase of 25 – 50%
About Beaver Street Life Insurance
Beaver Street is a Toronto-based insurance company that is proud to offer Ontario life insurance. We’ve made it our mission to provide quick, non-invasive, and affordable policies to families across the province.