Life insurance may not be the most exciting topic, but the latest numbers are hard to ignore: nearly half of Canadians either don’t have life insurance or aren’t even sure if they do. Almost the same share have no intention of buying any in the next five years. That’s a worrying trend and in my view, a dangerous one.
The main reason people give is cost. A recent survey from PolicyMe and Angus Reid found that one in three Canadians without coverage believes it’s simply too expensive. Among households with children, that figure jumps to 42 per cent. Given today’s high cost of living, that hesitation is understandable. But here’s the reality: delaying can cost more in the long run. Premiums increase with age on average about eight per cent every year. What feels unaffordable now will only become pricier.
Another problem is perception. Many Canadians think life insurance companies barely pay claims. In truth, the payout rate in Canada is around 99 per cent. That’s an astonishingly high figure, yet roughly one in five people assume insurers pay half or less. That disconnect speaks to a lack of trust and understanding, not to actual industry behaviour.
It’s also easy to dismiss life insurance as unnecessary 27 per cent of survey respondents said as much. But if anyone depends on your income, the absence of coverage can be devastating. Think about mortgage payments, childcare, and basic household expenses. Without that financial safety net, your family could face losing their home or sliding into debt at the worst possible time.
Affordability doesn’t have to be a deal-breaker. Term life insurance, which covers you for a set period (say 20 years), is far cheaper than whole life insurance and still provides critical protection. A healthy 40-year-old woman, for example, can get $500,000 in coverage for around $33 a month. That’s less than many of us spend on streaming subscriptions or coffee runs.
The takeaway is simple: even a modest policy is better than nothing. Start small if you need to, and increase coverage as your finances improve. Life insurance isn’t about betting against your life it’s about protecting the people you love from financial chaos if the unthinkable happens.
In a time when many of us are living paycheque to paycheque, skipping life insurance may feel like one way to cut costs. But it’s a gamble that could leave your family paying the ultimate price.
