Nearly nine in 10 (89 per cent) Canadians with life insurance say it supports their mental well-being, particularly by providing peace of mind that their loved ones will be financially protected and reducing worry about debts and final expenses, according to a new survey by Blue Cross.
The survey, which polled more than 2,100 Canadians aged 25 and older, found two-thirds (66 per cent) reported increased stress or anxiety in the past year, a figure that rose to 89 per cent among generation Z respondents. Canadians with life insurance were more likely to feel in control of their finances (85 per cent versus 76 per cent without coverage) and prepared for unexpected events (62 per cent versus 41 per cent). Gen Z was also the most likely to cite mental-health benefits tied to coverage (92 per cent).
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Among uninsured Canadians, more than half (52 per cent) said they wouldn’t be able to maintain their lifestyle for even one year if their household’s primary income earner died. Despite this risk, 54 per cent said they have no plans to purchase life insurance. Many rely only on workplace coverage, with 33 per cent of generation Z and 37 per cent of millennials depending on employer-provided benefits. A majority (89 per cent) of those respondents expressed concerns about sufficiency and 56 per cent worried about losing benefits if they changed or lost their job.
Younger Canadians reported the highest levels of stress and financial vulnerability. Nearly two-thirds (64 per cent) of uninsured generation Z respondents said their No. 1 concern is that life could change suddenly, double the rate of older respondents. Most (92 per cent) also acknowledged the risks of being uninsured. Still, just 12 per cent said they had no intention to buy coverage. Among those delaying, cost (31 per cent), competing financial priorities (29 per cent), lack of understanding (26 per cent) and postponing action (23 per cent) were the most cited barriers.
“Canadians want to feel confident and in control of their financial future,” said Tim Mawhinney, president and chief executive officer of Blue Cross Life, in a press release. “Despite awareness that long-term planning is crucial, confusion and perceived cost remain major barriers. Canadians see life insurance not just as financial protection but as a way to create a sense of calm.”
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