September is life insurance awareness month, and a new report from digital insurance provider PolicyMe in partnership with Angus Reid is spotlighting a concerning gap in coverage among Canadians. The culprits? Affordability concerns, medical requirements, and mistrust of the insurance industry, according to Unprepared: The 2025 Life Insurance Gap Report.
The report sheds light on just how many Canadians are leaving their families financially at risk—and why so many are putting off getting coverage.
How wide is the coverage gap?
PolicyMe’s study found that a staggering 42% of Canadians either don’t have life insurance or aren’t sure if they have it, with almost two-thirds of those who are uninsured saying they aren’t likely to get coverage in the next five years. Families with kids are the hardest hit: almost half (49%) of parents saying they probably won’t purchase life insurance in that same period.
Yet one in four Canadians without coverage aren’t confident that their families would be financially secure if they passed away unexpectedly.
Life insurance changes that. Among those with coverage, 80% say they’re confident that their loved ones would be financially protected.
It’s clear that life insurance provides peace of mind—so why are so many Canadians still putting it off?
Read more: Do I really need life insurance?
Why Canadians are skipping life insurance
Among those surveyed, more than a third say they don’t have life insurance coverage because it’s simply too expensive—and 42% of those people have kids at home. About 10% say that the high cost of living has delayed their plans, non-essential expenses typically the first to go when budgets get tight.
Medical requirements are another barrier. Just over a quarter (26%) hesitate to buy life insurance due to the medical questions that many policies require.
Perhaps most striking, though, is that 27% of Canadians—more than one in four—believe they don’t need life insurance.
Consider a family of four living on a single income. If the primary earner were to pass away unexpectedly, the loss of income could put a major strain on day-to-day living—expenses like rent or a mortgage, groceries, and childcare add up quickly. A life insurance payout could replace lost income, cover debts, and give the surviving parent breathing room to focus on family instead of finances during a difficult time.
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The benefits of getting covered sooner
When it comes to life insurance, starting early is key. Life insurance costs rise an average of about 8% each year you delay, so securing a term policy when you’re younger means you’ll enjoy the lowest rates for longer.
But getting coverage late is better than never—and it’s probably more affordable than you think. According to PolicyMe, the average cost of a 20-year term life insurance policy is around $20–30 per month for $500,000 in coverage if you start in your 30s.
And gone are the days of having to visit an agent and endure seemingly endless sales pitches. Many providers offer online quotes, while some let you complete the entire process online—from getting quotes to completing the medical questionnaire to finalizing your coverage.
Life insurance doesn’t have to be complicated or costly; it’s about making sure your loved ones are protected and giving yourself peace of mind, no matter when you start.
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Read more about insurance:
- Your complete guide to life insurance in Canada
- Do I really need life insurance?
- Which type of life insurance is best?
- Do you have enough life, disability, and illness insurance? Find out before you need it
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