Amid rising financial stress, many Canadians, especially younger adults, are turning to life insurance not only for future financial security, but as a source of mental health and wellbeing. The 2025 Blue Cross® Life Insurance Study (the “Study”), conducted with Research + Knowledge = Insight, surveyed 2,162 adults aged 25 and older between May and July 2025 to better understand how Canadians are coping under the current social and economic climate and their perceptions around long-term financial strategies. The findings reveal that while Canadians see life insurance as a stable financial tool, confusion around coverage can lead to gaps, especially during major life events or job changes, leaving people with less protection than they may need.

“Canadians want to feel confident and in control of their financial future,” says Tim Mawhinney, President & CEO of Blue Cross Life. “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.”

Canadians recognize life insurance as source of stability in uncertain times

Economic apprehension is indeed a reality that many Canadians are grappling with. The Study shows signs of widespread financial stress, with two-thirds (66%) of Canadians reporting increased stress or anxiety in the past twelve months, driven by inflation, recession concerns and housing costs, a stress significantly higher among 25+ Gen Z respondents (89%).

When asked about what would help them prepare for uncertainties and challenges, the Study reveals a gap between insured and uninsured people. Insured Canadians are more likely to feel in control of their finances (85% v. 76%) and prepared for unexpected life events (62% v. 41%). Most (89%) individuals with life insurance also say it supports their mental wellbeing, especially by providing peace of mind that their loved ones would be financially protected (44%) and reducing their worry about debts and final expenses (36%). Gen Z respondents were the most likely to cite mental health benefits associated with having life insurance (92%). Regionally, British Columbians also recognize this mental health benefit, with nearly half (45%) agreeing that life insurance provides peace of mind – higher than Ontarians (42%), Albertans (41%) and Saskatchewanians (40%).

Further emphasizing life insurance’s role in providing financial stability, over half (52%) 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.

British Columbians least likely to have life insurance, but more likely to recommend it to their younger selves

In British Columbia specifically, only 57 per cent of residents report having life insurance – the lowest proportion in Canada. More than half (51%) say they could not maintain their current lifestyle for even one year after losing a household income, highlighting significant financial vulnerability in the province.

Encouragingly, British Columbians are among the most likely to say they would recommend life insurance to their younger selves (33%, above the national average of 30%), showing a stronger awareness of its long-term value. Nearly half (45%) of British Columbians with life insurance also report that it provides peace of mind, which is higher than Ontario (42%), Alberta (41%) and Saskatchewan (40%).

Overall, the majority of Canadians (89%) recognize the value of securing life coverage in their twenties, particularly for added peace of mind as they age or when planning for life milestones such as marriage, having children or home ownership.

“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 Mawhinney.  

Workplace life insurance is a strong first step, but may not keep pace with life changes

Despite an overall awareness of the need for financial protection, more than half (54%) of Canadians without life insurance say they have no plans to get it.

One reason might be Workplace life insurance: despite being a very valuable starting point, it may not always be enough to support longer-term needs all on its own. Some Canadians rely solely on Workplace benefits as part of their financial security (33% of Gen Z and 37% of Millennials), but 89 per cent express concerns about whether their current coverage is sufficient. Additionally, 56 per cent of those with Workplace benefits worry about losing coverage if they were to change or lose their job. While some Workplace plans allow coverage to increase during major life events, many are tied to employment and are not transferable when changing or ending employment. When conversion to personal coverage is possible, rates are often higher than market rates and coverage amounts are limited.

Lack of clarity leaves younger Canadians more stressed and vulnerable

In addition to reporting the highest level of financial stress, nearly two-thirds (64%) 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%) 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.

Yet, when asked about reasons for not actioning their plans to secure coverage, Gen Z (31%) cite cost and competing financial priorities like debt or living expenses (29%). Lack of understanding (26%) and postponing taking action (23%) 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,” concludes Mawhinney.

To learn more about the Study, please visit bluecross.ca/lifestudy.

About the Blue Cross® Life Insurance Study

To create the 2025 Blue Cross® Life Insurance Study, Research + Knowledge = Insight, an independent research company, conducted an online survey from May to July 2025. The comprehensive sample included 2,162 adult Canadians aged 25 and older. The study has a margin of error of plus or minus 2%, 19 times out of 20.