'Younger Canadians need more clear, relatable, and accessible pathways to coverage,' says expert
Life insurance can be a key ingredient in ensuring workers’ well-being, and this is true even for young workers, according to a Blue Cross report.
While two-thirds (66 per cent) of Canadians report increased stress or anxiety in the past 12 months—driven by inflation, recession concerns, and housing costs—the stress is significantly higher among Gen Z respondents aged 25 and older (89 per cent).
However, insured Canadians are more likely to feel in control of their finances (85 per cent versus 76 per cent) and prepared for unexpected life events (62 per cent versus 41 per cent).
On the other hand, 50 per cent of uninsured Canadians say they would not be able to maintain their current lifestyle for one year if their household’s primary income earner passed away.
Life insurance linked to mental health
Most (89 per cent) individuals with life insurance also say it supports their mental well-being, especially by providing peace of mind that their loved ones would be financially protected (44 per cent) and by reducing their worry about debts and final expenses (36 per cent), found the survey of 2,162 Canadians.
“These findings underscore the emotional reassurance that comes with being financially prepared overall. Canadians see life insurance not just as financial protection, but as a way to create a sense of calm. It provides peace of mind that essential expenses and long-term needs can be covered—even during times of crisis,” says Tim Mawhinney, President & CEO of Blue Cross Life.
Overall, the majority of Canadians (89 per cent) recognise the value of securing life coverage in their 20x, particularly for added peace of mind as they age or when planning for life milestones such as marriage, having children, or home ownership.
Employer spending on wellbeing benefits has dropped significantly, falling by 13 per cent since 2022, according to a previous report.
Lack of clarity around insurance
“Canadians want to feel confident and in control of their financial future,” says Mawhinney. “However, many remain unclear about the life coverage they have, what it includes, and how it fits into their long-term needs. This leads to gaps at life’s most vulnerable moments, when protection is needed most.”
Nearly two-thirds (64 per cent) of Gen Z who do not have life insurance report their top concern is that life could change suddenly—twice as much as their older counterparts. Most (92 per cent) also acknowledge the risks of being uninsured. Younger Canadians also appear to be more open to purchasing coverage, with only 12 per cent saying they have no intention to get life insurance.
Overall, more than half (54 per cent) of Canadians without life insurance say they have no plans to get it.
Yet, when asked about reasons for not actioning their plans to secure coverage, Gen Z (31 per cent) cite cost and competing financial priorities like debt or living expenses (29 per cent). Lack of understanding (26 per cent) and postponing taking action (23 per cent) are also key barriers to getting coverage.
“Despite awareness that long-term planning is crucial, confusion and perceived cost remain major barriers. Younger Canadians need more clear, relatable, and accessible pathways to coverage—ones that reflect how they live, work, and plan for the future,” says Mawhinney.
Many Canadians are foregoing life insurance over concerns about costs and requirements, according to a previous report.
Employers can support their employees in securing life insurance by educating them about the options available through the workplace, says Jennifer Gassaway, senior product manager at The Standard.
“Employers providing a base amount of life insurance for their employees should clearly communicate this benefit to employees to ensure they are aware of the life insurance coverage being provided. Keep in mind that this base amount of coverage may not be enough coverage for many employees. Offering the option to purchase additional coverage empowers them to choose the level of protection that best fits their individual needs.
“When offering voluntary coverage, employers should clearly state the premium cost per pay period. Including premium grids or calculators in enrolment materials can help employees easily see the cost for specific amounts of life insurance coverage.”
