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The emotional cost of financial vulnerability
Financial anxiety is widespread in Canada. Two-thirds of Canadians (66%) aged 25 and older report experiencing stress or anxiety due to financial challenges in the past 12 months. In the face of widespread tariffs, lingering inflation, and economic uncertainty, many are losing sleep over how to pay the bills.
Why so many Canadians feel financially stressed
Even more concerning, half (50%) of the Canadians we surveyed said their household couldn’t maintain its current lifestyle for even a year if the primary income earner passed away. They have concerns about their family or partner suffering financially, becoming a burden to extended family and loved ones, and not being able to afford final expenses. This lack of a financial safety net is causing significant anxiety, particularly for younger Canadians.
When you’re trying to figure out how to deal with financial stress, life insurance may not seem like an obvious answer. But could getting coverage actually help you sleep better at night? Our data shows the answer is a resounding yes.
The unexpected mental health benefit of life insurance
You probably know that life insurance helps safeguard your family’s future. But does it do anything for you while you’re still alive? Our survey responses might surprise you.
A staggering 9 out of 10 Canadians (89%) with life insurance say it boosts their mental health. In today's uncertain financial climate, getting coverage can feel like a powerful life hack. Insured Canadians report having peace of mind knowing their family is protected, freeing them to live in the present without worrying about tomorrow. By reducing anxiety over things like final expenses and outstanding debt, they feel more in control of their future.
Life insurance isn’t just about what happens after you’re gone. It also has positive impacts now, reducing financial stress levels and improving your mental health today.
Why ‘good enough’ coverage may not be enough
Many Canadians rely on workplace group life insurance because it’s convenient. It may be paid for or subsidized by your employer as part of your compensation package, but this basic coverage may not keep pace with your evolving financial obligations.
Almost three-quarters (70%) of Canadians have concerns about relying on workplace group life insurance alone, and they’re right to be worried. The coverage amount is usually tied to salary (typically just 1-2 times what you make each year), and many Canadians we surveyed weren’t confident this was enough to meet their family’s needs.
More importantly, group life insurance is tied to your job. In fact, 56% of Canadians relying on workplace benefits coverage fear losing their insurance should they get laid off, change jobs, or retire. This protection could also cost more to replace later on, especially if your health changes.
How term life insurance helps ease financial stress
The protection from your workplace benefits is a great starting point, but term life insurance can fill the gaps. It offers customizable coverage that aligns with your needs and is completely portable, moving with you through any career changes. You can also lock in an affordable rate for up to 30 years, ensuring your loved ones’ financial future is secure no matter what happens.
Turning anxiety into action
Financial anxiety is a defining reality for younger Canadians. 89% of Gen Z respondents report experiencing stress due to financial challenges, citing concerns over record housing costs, a challenging labour market, and the threat of another recession. They’re also more likely than any other generation to be concerned about burdening their loved ones or not being able to afford final expenses.
Despite this overwhelming anxiety, there is a silver lining: Gen Z is also the generation most motivated to proactively manage their money and mental health. While over half of uninsured Canadians (54%) say they have no plans to get a policy, that number is much lower for younger adults at just 12%. This forward-thinking attitude is reflected in the advice shared by those who have already planned ahead: 44% of insured Gen Z Canadians would caution a friend not to wait until you need coverage to get it.
The responses from our study show that getting life insurance isn’t just a chore to check off your list. It's a strategic move that provides tangible financial stress relief, empowering you to live with greater confidence and less worry.
Simple steps to choose the right life insurance
Knowing how to feel financially secure is a universal goal, but for many Canadians, confusion about life insurance is a major obstacle. Our research finds that almost two-thirds (59%) of those without life insurance admit they’re taking a risk, but the process of choosing a policy with the right level of protection can feel daunting. The data suggests a simpler, more accessible approach is needed—one that reflects how Canadians actually live and plan for the future.
1. Identify your coverage gap
Do you have enough to cover your loved one’s financial needs? Our survey reveals that one in five (21%) insured Canadians don’t know how much insurance they have. Of those with an existing policy, close to a third (29%) have coverage for just a single year’s worth of annual income or less. To avoid being underinsured, it’s important to understand how much coverage your loved ones need to be fully protected.
2. Assess your needs
To determine the right amount of protection, start by assessing your current financial obligations. Be sure to account for your mortgage, any outstanding debts (like car loans or credit cards), and an estimate of your family's annual living expenses. Canadian financial experts recommend coverage equal to 7-10 years of your income as a starting point. This helps ensure your loved ones can maintain their lifestyle and achieve their goals without financial hardship.
3. Get a free quote
It only takes a few seconds to get a free, no-obligation quote from Blue Cross Life. A term life policy is often more affordable than you think, especially when it’s purchased when you’re younger and healthier. Our digital application makes it quick and easy to get coverage without leaving your home.
Don’t let misconceptions about cost or complexity get in the way of providing the protection your loved ones deserve. Whether your goal is to support your dependents, cover a mortgage, or to pay off debt, life insurance provides crucial financial security in the face of loss. For specific advice or extra support, our team of expert insurance advisors are ready to help.