Those with a mortgage buy more life insurance coverage, especially in their 20s and 40s, according to a survey PolicyMe released Wednesday.
More than two-fifths (42%) of respondents cited a mortgage as their top reason for buying insurance, second only to family well-being (79%).
On average, homeowners buy $762,660 of coverage compared to $553,124 for non-homeowners. The most popular coverage amount for homeowners was $1 million, versus $500,000 for non-homeowners.
“It’s encouraging to see that people are properly protecting the balance of their mortgage,” Andrew Ostro, co-founder and CEO of PolicyMe, said in an interview. “In the event of an untimely death, one of the biggest financial burdens is going to be paying the mortgage.”
The gap is highest for those aged 25 to 29, with homeowners ($783,824) buying 60% more coverage than non-homeowners ($490,190). This reflects high debt and low savings earlier in life and younger Canadians buying insurance to protect their financial exposure.
The gap closes in the 30s, where non-mortgage holders have more reasons to buy term life insurance, including children, non-mortgage debt and higher incomes.
Another difference in coverage occurs at age 45 to 49, where homeowners ($780,417) buy 55% more coverage than their non-homeowning peers ($503,313). This could stem from buying a second property, a larger home or refinancing.
“After you move into your first house, you chip away at that mortgage in your 30s,” Ostro said. “And then you get a second or bigger house later in life in your 40s and that gap increases again.”
While it seems easier to tick a box at the time of mortgage application to get the default mortgage insurance offering, Ostro said homeowners need to shop around. Mortgage insurance ends when the home is paid off and is typically a decreasing term, so coverage shrinks over time.
Meanwhile, buying a term policy that can be renewed beyond the initial mortgage can help protect future needs. Term policies that are convertible to a permanent policy without further evidence of insurability also ensure coverage even when the client’s health changes, he added.
The bilingual survey included responses from 1,450 Canadian adults between Jan. 1 and March 31, 2026.