Amid rising financial stress, many Canadians, especially younger adults, are turning to life insurance not only as a financial safeguard but also as a source of peace of mind. That is according to the 2025 Blue Cross Life Insurance Study, which surveyed 2,162 adults aged 25 and older between May and July 2025.
The study showed that while Canadians broadly view life insurance as a stable financial tools, many lack clarity about their coverage. This uncertainty can leave people exposed during major life events or job changes, when protection is needed most.
Financial stress and peace of mind
Two-thirds (66%) of Canadians reported higher stress or anxiety in the past year, driven by inflation, recession concerns, and housing costs. Among Gen Z respondents aged 25 and older, that figure rose to 89%.
Those with life insurance said they felt more in control of their finances (85% vs. 76% of the uninsured) and better prepared for unexpected events (62% vs. 41%). Most insured respondents (89%) linked coverage to mental well-being, particularly the reassurance that loved ones would be financially protected and debts covered. Gen Z respondents were the most likely to cite these benefits, at 92%.
The study also found that half of uninsured Canadians would be unable to maintain their lifestyle for a year if the household’s primary income earner passed away. The majority (89%) recognized the importance of securing coverage in their twenties to support milestones such as marriage, home ownership, or starting a family.
Despite this awareness, more than half (54%) of uninsured Canadians said they had no plans to buy coverage. Many rely solely on workplace life insurance, with 33% of Gen Z and 37% of Millennials doing so. Yet 89% of those with workplace benefits worried their coverage was insufficient, while 56% feared losing it if they changed jobs. Conversion options exist but are often costly and limited.
Younger Canadians most exposed
Gen Z respondents reported the highest levels of financial stress and concern about sudden life changes. While 92% acknowledged the risks of being uninsured, barriers such as cost, debt, and lack of understanding delayed action.
The findings highlighted an opportunity for insurers to bridge protection gaps, particularly among younger adults.
Simplifying products, addressing cost concerns, and offering portable coverage could help insurers meet evolving needs. Positioning life insurance as both financial protection and a contributor to peace of mind may strengthen its appeal to the next generation of policyholders, according to the survey.
