In 2023, 57 per cent of Canadians had life insurance, according to the 2023 Canadian Insurance Barometer Study carried out by LIMRA and Life Happens. This represents a three-point increase from a similar study conducted by LIMRA in 2019. 

Despite this increase in life insurance ownership, LIMRA's survey reveals that 8.4 million Canadian adults have an insurance gap, representing 31 per cent of the population. Among them, 21 per cent say they need insurance, and 10 per cent need more insurance. 

The survey indicates that these Canadians are less confident in their ability to withstand a financial shock: 44 per cent say their family would face financial hardship within six months should the primary wage earner die unexpectedly. 

Aware of the risks… 

More than 4 in 10 Canadians (43 per cent) are very or extremely concerned about saving enough for a comfortable retirement. Additionally, half of Canadians report that their loved ones would dip into retirement savings to cover expenses if the household's primary breadwinner suddenly passed away. 

Other concerns among survey participants include 

  • Paying for long-term care (35 per cent). 
  • Saving for an emergency fund (34 per cent). 
  • Supporting oneself if disabled or too sick to work (31 per cent). 
  • Paying for emergency medical expenses due to illness or injury (27 per cent). 
…But hindered by financial worries 

According to the sentiments expressed by Canadians surveyed by LIMRA and Life Happens, financial concerns play a key role in determining why so many Canadians remain uninsured or underinsured.

The survey reveals that 53 per cent of Canadians haven't purchased the coverage they know they need because they find it too expensive, and a third cite other financial priorities. 

Opportunity for advisors 

The survey also found that half of the respondents would turn to life insurance, savings products, or both, for financial support. "This presents an opportunity for financial professionals and carriers to emphasize the importance of life insurance ownership," the report states.

They recommend that advisors demonstrate how life insurance can provide financial peace of mind by offering a safety net for their loved ones. "Nearly a quarter of Canadians worry about leaving their dependents in a difficult financial situation should they die prematurely," the survey reports.