OTTAWA, ON – As the soaring cost of living continues to strain household budgets across Canada, a growing number of residents are opting to cancel or skip life insurance policies to save money. According to the 2025 Life Insurance Gap Report released by PolicyMe, a significant portion of the population is prioritizing immediate monthly bills over long-term financial security.
The study reveals that 42% of Canadians either currently lack life insurance or are unsure if they have any coverage at all. Among those without a policy, 34% cited high costs as the primary barrier. For many families, life insurance is increasingly viewed as a “luxury” expense that can no longer be justified alongside rising grocery prices, rent, and mortgage payments.
Andrew Ostro, CEO of PolicyMe, noted that while affordability is a major concern, there is also a psychological barrier at play. Many people avoid purchasing insurance simply because they are uncomfortable discussing the topic of death. However, Ostro pointed out that the perception of insurance as a massive financial burden is often a misconception. He noted that a healthy 35-year-old man, for instance, could secure a $250,000 policy for approximately $19 per month.
Financial experts emphasize that life insurance remains a critical investment for family stability. Unlike many other expenses, life insurance premiums are typically locked in at the time of purchase and do not increase, and policies can be canceled at any time if circumstances change. For families like Pamela La Corte and her husband Luigi from Vaughan, Ontario, maintaining their policy is non-negotiable. The couple believes that despite the economic pressure, the insurance is vital to secure their twin children’s future and ensure that mortgage obligations can be met in the event of an unexpected tragedy.
