Life insurance coverage among Gen Z respondents nearly doubled to 58% from 30% last year, according to PolicyMe’s 2026 life insurance survey released Monday.
Among respondents aged 18 to 34, which include older Gen Z and younger Millennials, coverage rose to 67% from 48%, according to the study. Almost seven in 10 (68%) Canadians have at least one type of life insurance, up from 58% in 2025.
The increase was particularly pronounced among younger Canadians. Life insurance coverage among Gen Z respondents nearly doubled to 58% from 30% last year. Among respondents aged 18 to 34, which include older Gen Z and younger Millennials, coverage rose to 67% from 48%.
A quarter of Gen Z respondents and 35% of those 18–34 said they held the coverage through their employer.
The growth reflects greater awareness among Gen Z and younger Millennials as they age, Andrew Ostro, co-founder and CEO of PolicyMe, said in an interview. Young people have had a difficult time understanding the need for life insurance until they reach personal milestones like homeownership and starting a family.
“Unlike auto insurance where it’s easy to conceptualize what you’re insuring — you get into a car accident and cover repairs — life insurance is not,” he added. “It’s not really until you start to have kids where you start to understand what exactly you’re protecting.”
That creates an opportunity for life agents to show younger clients how insurance fits into their broader financial plan, Ostro said. During a needs analysis, for example, advisors can ask whether a family would have sufficient resources if one income earner died.
More perm than term
The survey also found a slightly higher proportion of younger Canadians reported having permanent life insurance than term life insurance.
Permanent life insurance can provide lifelong coverage and may include a cash-value component. But it also generally comes with higher premiums and a longer-term financial commitment than term insurance.
Ostro said he is concerned that some younger Canadians may be attracted to permanent insurance primarily for its investment features.
“You lose a lot of liquidity [and] you don’t know what you’re going to need money for in the future,” he added. “It’s locked in for a long time, or you pay high cancellation fees and lose all the tax benefits of the policy’s investment component.”
For many younger clients, Ostro said, he would prefer to see them buy less expensive term insurance and direct the savings to a TFSA.
The bilingual survey, conducted Aug. 6–11, included 1,517 Canadian adults who were members of the Angus Reid Forum.