A new survey from Blue Cross suggests that Canadians see life insurance as a stable financial tool, but confusion about coverage can lead to gaps. They say many remain unclear about the life coverage they have, what it includes and how it fits into their long-term needs.

“Economic apprehension is indeed a reality that many Canadians are grappling with. The study shows signs of widespread financial stress with two thirds or 66 per cent 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,” Blue Cross states in an announcement about its survey results.

Based on a survey of 2,162 Canadians over age 25, the release goes on to say that insured Canadians are more likely to feel in control of their finances (85 per cent compared to 76 per cent of uninsured Canadians who said the same). They also say insured Canadians say they feel better prepared for unexpected life events. This was reported by 62 per cent of survey respondents with insurance, compared to 41 per cent of respondents without insurance.

They also note that 52 per cent of the uninsured respondents said they would not be able to maintain their current lifestyle for a year if their household’s primary income earner passed away. That said, 54 per cent of the uninsured sample said they have no plans to get life insurance at all. 

However, the same cannot be said about Gen Z clients. Although 31 per cent say cost is a barrier, followed by debt and living expenses (29 per cent) and a lack of understanding (26 per cent), they say younger Canadians are more open to purchasing coverage, with only 12 per cent saying they have no intention to get life insurance.

Provincial differences  

By province, the survey shows that 59 per cent of Ontarians have some form of life insurance, while 66 per cent of Quebec survey respondents reported the same. The national average came in at 61 per cent of respondents who reported having some form of life insurance.

Over half of Ontario respondents, 54 per cent, say they would not be able to maintain their current lifestyle within one year of losing a household income. The province tied with Atlantic Canada as the most financially vulnerable region in Canada. “Ontario’s vulnerability is notably higher than Saskatchewan’s (47 per cent),” the company said in a statement emailed to the Insurance Portal.

Quebec’s proportion of residents with life insurance, meanwhile, is significantly higher than Ontario and higher than British Columbia’s reported coverage, which came in at 57 per cent. They add that 49 per cent of Quebec respondents said they could maintain their current lifestyle for up to a year after a death-related income loss. “Quebec’s financial resilience is not significantly different from the national average, but is lower than Saskatchewan,” they write.