The insurance gap is leaving millions of Canadians at risk: Learn how term life helps provide an affordable safety net

Too many families discover the hard way that without life insurance—or with too little coverage—the bills don’t pause for grief. Mortgages still come due, groceries still need to be purchased, childcare doesn’t get cheaper, and debt doesn’t disappear. Savings may get drained, RRSPs raided, or future plans traded for short-term survival. Life insurance exists to help prevent these hardships.

Yet the gap is real: nearly one-third of Canadian adults say they need more life insurance, ^{footnote 11} 42% have no coverage at all, and 65% of the uninsured don’t plan to buy any within five years. ^{footnote 22} This leaves families vulnerable—four in ten Canadians say their families would face financial hardship within six months of losing a breadwinner. ^{footnote 11}

Why aren’t Canadians buying enough coverage?

• Cost concerns: The top barrier. More than half of Canadians (53%) say they haven’t purchased the coverage they know they need because they think it’s too expensive. ^{footnote 11}
• Overreliance on group life insurance: Many believe that employer-sponsored group insurance provides sufficient coverage. However, since group plans often pay only a multiple of one or two times salary, for most Canadians this will not be enough to replace their incomes for 10 or 20 years if a breadwinner dies prematurely. ^{footnote 33}
• Misconceptions: 21% believe insurance companies only pay out half of claims or less ^{footnote 22}— despite a 99+% payout rate.
• Medical exam worries: 26% say the medical tests required for life insurance make them less likely to purchase it. ^{footnote 22}

Why term life can be a smart solution

For many Canadians, term life insurance stands out as a practical solution for protecting loved ones without overspending. For example, a 30-year-old man could qualify for more than $600,000 of coverage for about $1 per day (10-year term, paid monthly: $30.42). A 30-year-old woman could qualify more than $1 million of coverage for the same amount. ^{footnote 55} This cost-effective safety net can be used to cover mortgages, childcare and outstanding debt, helping to keep families financially stable during life’s toughest moments.

Flexibility is another advantage. Many term policies allow conversion to permanent coverage, often without additional medical evidence. This means Canadians can adapt their protection as life changes, whether paying off a mortgage or planning for estate needs.