Life Insurance Ownership Is Declining Among Canadians
Canada’s life insurance market may be expanding, but new Environics Research findings featured by Advisor.ca suggest many households remain financially vulnerable. Individual life insurance ownership declined from 40% in 2016 to 31% in 2026. The decrease was particularly pronounced among Canadians aged 35 to 49, whose ownership fell from 40% to 32%, and those aged 50 to 64, where it dropped from 47% to 35% – life stages often associated with mortgages, dependents and peak earning years.
The findings point to several forces behind this widening protection gap. Canadians are reaching major milestones later while managing higher living and housing costs, debt repayment and competing savings priorities. Some are also relying on personal assets or workplace benefits for protection, even as changing employment models can limit access to employer-sponsored coverage. Access to professional advice may be another factor: among Canadians under 35 with savings and investments, the proportion working with an advisor fell from 68% in 2016 to 54% in 2026.
For financial advisors, these shifts reinforce the value of discussing protection as part of a broader financial plan—not only at the start of a client relationship, but whenever life circumstances change. Regular reviews can help determine whether existing coverage still reflects a client’s family responsibilities, financial commitments and long-term goals. Accessible solutions such as term life insurance may also help uninsured or underinsured Canadians address immediate protection needs while balancing other priorities.
Read the full feature on Advisor.ca to explore the research findings and learn how advisors can help close Canada’s life insurance protection gap.
