PolicyMe 2026 Study Reveals Canadian Life Insurance Surge Driven by Gen Z and Young Adults

PolicyMe, a Canadian digital-first insurance distributor, today released the second annual edition of its Life Insurance Gap Report, Coverage Increases, Confidence Lags: The 2026 Life Insurance Gap Report, in partnership with Angus Reid.

The data shows roughly two in three Canadians (68%) reported having at least one type of life insurance coverage, up a staggering 10 percentage points from 58% in 2025. But that upward trend doesn’t signify peace of mind, with nearly one in four (24%) Canadians in 2026 still not confident or unsure that their families would be financially secure if they passed away unexpectedly. That gap may be tied to how Canadians are getting covered in the first place. Half of insured Canadians have workplace plans (50%), and more than a quarter of those with workplace coverage don't even know how much coverage they have, a gap that likely leaves many feeling less secure even after getting a policy.

“It’s encouraging to see more Canadians securing life insurance this past year, especially younger Canadians who are getting coverage at a much higher rate than previous years,” said Andrew Ostro, CEO and Co-Founder of PolicyMe. “But having a policy isn't the same as feeling secure. A lot of Canadians still aren't confident their families would be financially protected if something happened to them. It's worth taking a few minutes to check whether your coverage is enough, rather than assuming it is, especially if your primary source of life insurance is employer-based coverage.”

How Many Canadians Have Life Insurance Coverage?

Coverage climbed across the country between 2025 and 2026, but not evenly, and it was not accompanied by an increase in confidence in coverage protection.

• 68% of Canadians reported having at least one type of life insurance, up from 58% in 2025
• Much of that increase stems from the younger generation, with coverage from those aged 18-34 rising from 48% to 67% YoY, while coverage among the Gen Z group specifically jumped from 30% to 58%. This growth possibly reflects a mix of factors, including more of this generation reaching milestones like homeownership or starting a family.
• Uninsured rates were highest in British Columbia, where 39% of respondents reported they did not currently have life insurance coverage, compared to just 28% in Atlantic Canada
• Among respondents with children in the household, 30% weren’t confident or were unsure of their family’s financial security should they pass away unexpectedly, a nine-point increase over those who didn’t

Why Don’t Canadians Have Life Insurance?

Cost, or the perception of it, remains the top reason Canadians cite for not having coverage, and a growing share say rising living costs are pushing their purchasing plans further out. When asked to select every applicable reason for why they didn’t have coverage, uninsured Canadians shared the following insights:

• 30% mentioned cost, 26% said they had no debts, dependents, or other financial obligations, and 19% said they hadn’t thought about it
• 15% said rising living costs had delayed their plans, up from 10% in 2025
• 48% of respondents with children in the household cited cost among the reasons they didn’t have life insurance
• 51% said nothing would make them likely to purchase coverage in the next five years

Is Workplace Life Insurance Enough?

For many Canadians, workplace life insurance is common, but it's often not enough on its own, ending when the job does and rarely offering the stability people need.

• Among Canadians with life insurance, 50% said they held group coverage through their workplace
• Among all Canadians, 79% of those with an annual household income of $100K or more reported having life insurance coverage, compared to only 50% of those with a household income under $50K
• Among respondents with workplace coverage, the most commonly reported coverage amount (26%) was $100,000 to $299,999, which may not be enough to pay off a mortgage or fully support children into adulthood
• Among respondents with workplace coverage, 26% didn’t know how much coverage they had

When Should Canadians Purchase Life Insurance?

PolicyMe’s internal data revealed that major life milestones remain the biggest trigger to purchasing life insurance.

• 79% of term life insurance applications cited family well-being as a motivating factor
• 42% of PolicyMe’s applications cited a mortgage as a motivating factor

The full 2026 Life Insurance Gap Report is available for viewing and download at www.policyme.com/blog/life-insurance-gap-report-2026.