Over two-fifths (42%) of Canadians don’t have life insurance or aren’t sure if they are covered, according to a survey released by online insurance company PolicyMe on Wednesday.
Among those Canadians, nearly one in four (23%) have children living at home.
“Life insurance is supposed to provide peace of mind, yet our findings show that too many Canadians either don’t have coverage or don’t trust the industry,” said Andrew Ostro, CEO and Co-founder of PolicyMe, in a release.
Among the uninsured, 65% said they were unlikely to take out life insurance in the next five years. Those aged 18 to 34 are the most likely to consider buying life insurance (34%), compared to 22% of those aged 35 to 54 and 4% of those aged 55 or over.
Those who are insured are most commonly covered through their employer (37%), followed by term life (15%), mortgage life (8%) and other products (2%).
While one-quarter of respondents aren’t sure their families would be financially secure if they died, 80% of those who currently have life insurance reported feeling confident in their family’s financial security.
Canadians without coverage generally pointed to financial reasons for not buying insurance. Over one-third (34%) said it’s too expensive, while one-tenth said high living costs delayed their plans to buy a policy.
If people think the premiums are too high, they can lower the coverage or reduce the term length, Ostro said in an interview. “If I can’t afford the full policy, at least give me something.”
Meanwhile, 27% of respondents said they don’t need life insurance.
Many people associate insurance with health and don’t see any immediate risk, especially if they are younger, Ostro said. “You’ve never had any health scares. It’s hard to put your mindset in like, ‘Okay, I need this in case I die.’”
People who have coverage through work may assume it’s sufficient, but that’s not necessarily the case, Ostro said. While workplace health and dental coverage may suffice, workplace life insurance may provide a lower amount than what the person actually needs.
Another area where people may be underinsured is mortgage life insurance. While it provides higher coverage than employer coverage and can help pay off debt if an income earner dies, Ostro says it doesn’t account for the expenses and lifestyle of the insured person’s spouse or children.
Common barriers
Another common barrier to buying life insurance is medical testing, with 26% of respondents saying it made them less likely to be covered. Among those likely to buy a policy in the next five years, 37% said medical tests made them hesitate.
While many Canadians may qualify for a standard rating after answering a health questionnaire without needing a blood test, anyone with a prior medical condition should opt for a blood test when offered, Ostro said. That’s because they could qualify for lower rates than “fluid-free” coverage. “You should never take a higher price in place of a blood test,” he said.
In addition, one-fifth (21%) of Canadians believe insurers pay 50% or less of their claims, a misconception given that 99% of claims are paid out in Canada, according to the report. Less than half (49%) said they believe insurers pay out 51% or more of claims.
The bilingual online survey, conducted Aug. 21–25, 2025, polled 1,507 adult Canadians who are members of the Angus Reid Forum.