01/30/2026
Great article in the Globe and Mail, FB does not allow to share the link, so here it is. Well worth the read, please like and share, and reach out to discuss.
When it comes to life insurance, Canada has a growing protection gap – and the impact can be catastrophic.
A study by the Life Insurance Marketing and Research Association (LIMRA) found that just 57 per cent of Canadians own life insurance. More than one in four respondents said that if their household’s primary earner died, they would feel financial hardship within six months. One in 10 said it would just take one week.
Many Canadians underestimate the need for life insurance, and even those who recognize its importance often shy away from discussing it. From discomfort with mortality to confusion about cost, people often delay the conversation longer than they should. Many Canadian households remain underinsured, particularly younger adults who assume workplace coverage is sufficient.
“There’s still a taboo around life insurance. Even when someone passes away, it rarely comes up whether they had it or how much it helped the family,” says Paul Gobeil, vice-president of Individual Insurance at Co-operators. “Because no one talks about it, it stays unfamiliar.”
Reframing the conversation from death to financial protection can make it easier. Clearing up misconceptions helps, too.
According to LIMRA, 61 per cent of adults under 45 overestimate the cost of coverage – in some cases, they overestimate the price by up to 10 times. “People think it’s out of reach,” says Mr. Gobeil.
Moreover, it can be tough to sort through the range of options and terminology. The top reason people don’t purchase life insurance is confusion, reports LIMRA. At the same time, data from Ipsos shows that while more than half of Canadians are interested, they don’t know where to start or who to talk to. That only adds to the anxiety.
“People assume it takes a long time or is too complicated. But for a typical case, an advisor can get you started in one meeting, and then you can complete an application in 20 minutes,” says Mr. Gobeil.
He adds that emotional reactions to the concept of life insurance are completely normal. Having an advisor who can meet clients where they’re at, both emotionally and financially, goes a long way.
“These conversations are most often a relief, which is its own reward. You’ve taken control of your financial future. That’s great for your mental and financial health.”
The birth of a child is a common prompt for life insurance, but it’s far from the only one. Any shared financial responsibility can create a need for coverage.
“As soon as you’re sharing expenses with someone, like rent, mortgage payments or even bills, there’s a financial dependency. If one income disappears because of an illness or death, the other person may struggle,” says Mr. Gobeil.
It’s advised to look into coverage while you’re young to take advantage of lower costs. Avoiding or delaying life insurance conversations means premiums can start to increase (depending on a person’s age and physical health).
“Waiting for the perfect moment often means paying more later,” Mr. Gobeil says.
He advises people to view insurance as part of their overall financial plan instead of a one-off decision – it should evolve and change along with your needs, goals and stage of life. That means it’s important to review the policy every few years to ensure your coverage is adequate. While some tasks can be done online, meeting with an advisor helps ensure that all the essential areas are addressed and questions answered.
“A good advisor will take a holistic view. They’ll ask about your dependents, debts, living situation, income and health, and then tailor a plan that fits your stage of life.”
Having the right information and talking to a trusted advisor can help Canadians make confident and informed life insurance decisions. Look at it as securing your peace of mind, says Mr. Gobeil, without getting bogged down with endless “what ifs.”
“You’re not planning for the worst – you’re planning for the people you love.”
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