Nearly one-third of Canadians surveyed say they do not have life insurance, with significant shares of older Canadians also reporting that they lack coverage, according to new research from TD Insurance.
The survey found that 32 per cent of respondents do not have life insurance, while 42 per cent of Boomers and 32 per cent of Gen X respondents said they currently have no coverage. The findings were released as part of Life Insurance Awareness Month.
Life milestones not always prompting reviews
The survey suggests many Canadians are not regularly reassessing their life insurance as their financial circumstances change. Among respondents without coverage, 46 per cent said they could not envision a life event that would motivate them to consider purchasing it.
Cost was cited by 35 per cent of Canadians without life insurance as a barrier to purchasing or reviewing coverage, while 31 per cent said they did not think insurance was needed at their current life stage. Other reasons included competing financial priorities at 26 per cent, uncertainty about where to start at 21 per cent and lack of understanding at 17 per cent.
Younger Canadians were particularly likely to view life insurance as something that can be deferred. Fifty-six per cent of Gen Z respondents said they believe life insurance is something that can be put off until later in life, compared with 41 per cent of Canadians overall.
Nearly three-quarters of respondents, or 73 per cent, said they had put more thought into other major financial decisions than into determining how much life insurance coverage they might need.
"Life insurance isn't necessarily something people review regularly, and knowing how much coverage you may need isn't always straightforward," said Patricia Foley, associate vice-president, Delivery Excellence Life, Health & Credit Protection at TD Insurance. "When Canadians are juggling competing financial priorities, reviewing their life insurance may not feel urgent. Yet, major life milestones can be valuable moments to reassess whether existing protection still aligns with their circumstances."
The survey also found that 74 per cent of respondents believe they would benefit from clearer guidance on how factors such as age or health can affect life insurance options and costs.
Workplace coverage leaves some Canadians uncertain
Workplace life insurance was another area where respondents reported gaps in their understanding. Among Canadians with workplace life insurance, 44 per cent said they either did not know how much coverage they had or were unsure whether it was sufficient.
Another 34 per cent of Canadians said they had delayed purchasing or reviewing their life insurance needs because they assumed their workplace coverage was enough.
"Workplace life insurance can provide meaningful coverage for many Canadians, but it's important to understand how that coverage fits into a broader financial plan," said Foley. "As people approach retirement or experience career changes, reviewing what life insurance coverage they have, what may change in the future, and whether additional protection may be needed, can help avoid unexpected gaps."
TD Insurance said major financial and personal milestones, including buying a home, starting or growing a family, changing jobs and preparing for retirement, can provide opportunities for Canadians to reassess their coverage.
The company also recommends that people with workplace insurance confirm the amount and type of coverage they have and understand how a job change or retirement could affect those benefits.
For Canadians who do not understand their life insurance options, TD Insurance recommends considering the people and financial responsibilities they may want to protect, reviewing existing coverage and seeking information from a licensed life insurance adviser. The survey found that 21 per cent of respondents without coverage cited uncertainty about where to start as a barrier.