With the rising cost of living, more Canadians are finding it difficult to pay the bills each month, and a recent survey has found that many are going without life insurance as a way to save each month.
However, if you have dependants, life insurance should be an important part of your financial planning, according to experts.
“Now that we have two kids, it makes me feel so much more relieved and it’s part of our budget now that we don’t think twice about it,” said Pamela La Corte, of Vaughan, Ont.
Pamela and her husband, Luigi La Corte, are parents of twins who recently turned one. Before the couple started a family, they decided to get life insurance.
Luigi told CTV News that having a life insurance policy was an important part of their family’s fiscal strategy.
“It’s nice knowing if you pass, your kids can be set up, your mortgage is paid off, and your kids won’t have a burden—that’s what I like about it,” Luigi said.
According to PolicyMe’s 2025 Life Insurance Gap Report, 42 per cent of Canadians don’t have life insurance or are unsure if they do.
65 per cent said they are unlikely to get life insurance in the next five years, and 25 per cent said they aren’t confident their family would be financially secure if they died unexpectedly.
34 per cent of Canadians without coverage also said its too expensive, rising to 42 per cent among parents with children at home.
“When it comes to life insurance, people don’t want to think about their death,” said Andrew Ostro, co-founder and CEO of PolicyMe.
PolicyMe is a Canadian digital insurance distributor and administrator. It specializes in term policies and according to Ostro, life insurance is not as expensive as many people think.
A 20-year-term policy for $250,000 for a 35-year-old male who is healthy and a non-smoker is about $19 per month. For a 35-year-old female, it’s about $15 a month.
Once locked in, rates won’t go up and you can cancel at anytime.
“The point of life insurance is really to make sure if future income is not around because you pass away that there is still money there to support the people who rely on you,” said Ostro.
According to financial expert Evelyn Jacks, president of the Knowledge Bureau, families should have a will, along with life insurance, as part of their wealth management.
“Life insurance is a critical part of asset protection” said Jacks. “It’s a transaction that you should do for yourself and your family to give you peace of mind.”
She also explained that in the event a life insurance policy is paid out, the beneficiaries receive the money tax-free.
Steps to take to obtain life insurance
Finding extra money for another expense can be difficult, but it may be worth it to know in the event of your death, your loved ones will be looked after.
If you have a term policy, you may not need mortgage insurance and it’s also usually cheaper. Along with term insurance, there is also whole life and universal life policies.
You may also have group insurance through your work, however, that could change if you leave your job.
You may wish to seek out the services of a life insurance expert, financial planner or speak with your financial institution about what might be best for you.
