Life insurance trends in Canada are shifting as more young adults think about money and financial security in a tough economy. Still early in their careers, many earn at the lower end of the pay scale and haven’t had much time to save. Concerned about their increased financial risk, they are looking at life insurance as a way to protect their future.
2025 Blue Cross® Life Insurance Study
Blue Cross recently surveyed more than 2,000 Canadian adults from 4 generations to get a true picture of Canada life insurance trends. The youngest generation of workers, Gen Z, showed some distinct patterns. Key findings include:
- Financial stress: Canadians are feeling more money pressure this past year, and young adults are feeling it the most.
- Getting coverage: Most young working Canadians get life insurance mainly through their workplace benefits.
- Mental wellbeing matters: Most Canadians view life insurance as a way to reduce stress about possible money problems.
- Gaps in protection: Many Canadians would face serious money problems if the main earner in their household died—even those with life insurance.
- Worry about risk: Concern about not having life insurance is highest among young adults and slowly lessens with older age groups.
- Getting covered early: Canadians see life insurance as valuable when they are young to give them protection and confidence for the future.
- Workplace insurance risks: Canadians are not confident that workplace insurance alone is enough for their needs.
- Being proactive: Nearly half of young adults say they would tell friends to get life insurance early so it’s ready when needed.
Financial worry and youth wellness
Money pressures affect the daily lives of many Canadians, with young adults feeling it the most. As they start building their finances, many are worried about challenges like inflation, recession and housing costs. As a result, 90% of young adults say financial stress over the past year has affected their wellbeing, contributing to:
- Mental stress or anxiety
- Difficulty paying bills
- Trouble sleeping
- Feelings of helplessness
- Physical symptoms such as headaches or tension
- Neglecting physical health, including exercise and nutrition
The impact goes beyond money, influencing how young Canadians manage their health, work, and overall wellbeing.
The life insurance coverage gap in Canada
Canadians who are already short on money face more risk if something unexpected happens. Half of those surveyed would struggle to cover expenses for a year if a main earner died. Even with existing life insurance, half are covered for three years or less. This shows that according to current Canada life insurance trends, many families are still vulnerable when it comes to money.
Gen Z’s top concerns about being underinsured
A striking 92% of young adults say they worry about not having life insurance. Compared with older adults, they are:
- Twice as likely to worry about sudden life changes
- Twelve times more likely to feel stress about leaving their spouse without enough coverage
- Seven times more likely to worry that their life insurance isn’t enough to support their family if something happens to them
For this generation, going without life insurance feels especially risky, with money and emotional worries are worse by an uncertain economy.
Benefits of getting life insurance early
With money and financial security top of mind, the study shows that 89% of Canadians see the value of getting life insurance early. In fact, a quarter worry that waiting could make it too expensive to afford later. Many young adults recognize their advantage: as the youngest group, they can lock in the lowest rates now, even for larger coverage amounts.
Here’s how early coverage makes a difference:
- Feeling protected: Almost half (44%) say having life insurance early makes them feel more secure about the future. And 41% like knowing their coverage is ready when it’s needed, helping them feel prepared if something unexpected happens.
- Planning and control: For 28%, having coverage early helps them feel more confident when planning big life events like buying a home or starting a family. 22% agree that coverage helps them feel more in control of their money and financial choices.
- Financial advantages: About a quarter (24%) see early life insurance as a way to support savings or investments, giving more flexibility to plan for future goals.
- Wellbeing and health: Life insurance isn’t just about finances. Twenty-two percent say it improves their overall quality of life, while 21% notice less stress and better mental health. Another 15% feel it helps them plan for their long-term health and future.
Why Gen Z isn’t (yet) buying life insurance
Although most Canadians see early life insurance coverage as a smart decision, many young adults haven’t acted yet. For this group, not having coverage often reflects their life stage rather than a deliberate choice to go without it. Just entering the workforce, they often earn lower salaries, face new financial responsibilities and many haven’t yet explored life insurance options.
- Planning to get coverage: Gen Z is the most likely age group to say they intend to obtain life insurance soon.
- Knowledge gaps: About a quarter (26%) say that not fully understanding life insurance has stopped them from buying coverage.
- Life stage factors: Many don’t have dependents yet, which can make them feel that getting coverage isn’t an urgent priority.
- Financial considerations: 31% say cost is a barrier, while 29% point to other money priorities, like debt or everyday expenses.
- Alternative investments: For many, life insurance isn’t yet being replaced by other ways of saving and investing. Only 12% of young adults report having other financial investments.
Bottom line: Life stage, financial situation, and familiarity with life insurance explain why some young adults don’t yet have coverage. Over time, they are more likely to consider it as their income and responsibilities grow.
Workplace coverage for young adults
Gen Z stands out for having the highest coverage rates of any age group, with 73% saying they already have life insurance. Most of this comes through workplace benefits, which are often the first and sometimes only coverage young working Canadians have. However, those who rely only on workplace insurance report concerns about:
- Losing benefits if they leave the job (57%)
- Insufficient coverage amounts (44%)
- Limited customization (43%)
- Minimal control over policy terms (42%)
Because young adults depend so much on workplace coverage, its limits can leave them less protected and feeling less secure.
Alberta life insurance perspectives
The survey found that the biggest encouragement for Albertans to buy life insurance is the need to protect their dependents. This reflects broader Canada life insurance trends, where family security drives coverage decisions.
This focus on family security has a direct impact on the market. According to Canadian Life and Health Insurance Association, Alberta households carry the highest average coverage in Canada at $606,000. They’re also buying policies earlier, reflected by a median policyholder age of 38, 3 years younger than the national average of 41.
Despite high insurance protection in Alberta, only one in four Albertans believe they could keep their current lifestyle for a decade or more if they lost their spouse’s income. This level of concern is similar in provinces with much less coverage.
Why the low confidence? According to Statistics Canada, Alberta has the highest cost of living in the country. This suggests Albertan families simply need more insurance than those elsewhere to maintain their standard of living if a main earner’s income is lost.
Download the full study
For young adults, entering the workforce in Alberta brings unique financial pressures, making life insurance an increasingly important tool. Early coverage can fill gaps, build long-term security and offer reassurance as they plan for the future. Making smart choices now can help them feel more confident about money later.
For more insights into how Canadians view life insurance, read the full Blue Cross® study.
Not sure your coverage is enough—or don’t have any yet? Explore extra life insurance coverage if you are looking for more protection.
Or go beyond life insurance with comprehensive benefit plans for every stage of life, including The Young Adult plan. Discover your options for flexible benefit plans.
