A new TD Insurance survey reveals dangerous knowledge gaps around life insurance as Canadians navigate major life transitions
One in three Canadians currently has no life insurance and a significant share of those who do hold coverage are not clear on how much protection they actually have, according to new research released by TD Insurance for Life Insurance Awareness Month in September 2026.
The survey, conducted by Leger Opinion between August 31 and September 2, 2026, polled a nationally representative sample of 1,500 Canadian adults. Its findings point to persistent blind spots across generations, with 42 per cent of Boomers and 32 per cent of Gen X, who are nearest to retirement, saying they have no life insurance at all.
The data represents a clear opportunity for advisors working in the life and health space to deepen client conversations during key life events.
Milestones not triggering coverage reviews
Despite the fact that major transitions such as buying a home, changing jobs or starting a family are widely recognised as moments to revisit financial planning, many Canadians are not connecting those milestones to a review of their life insurance needs.
The survey found that 73 per cent of respondents said they have given more thought to other significant financial decisions than to how much life insurance coverage they may need.
Among Canadians who do not have life insurance, 46 per cent said they could not envision a life event that would prompt them to consider getting coverage. Cost was cited as a barrier by 35 per cent of uninsured respondents, while 31 per cent said they did not believe coverage was necessary at their current life stage.
Competing financial priorities were cited by 26 per cent, and 21 per cent said they were unsure where to begin.
Younger Canadians are also deferring the decision. More than half of Gen Z respondents (56 per cent) said they believe life insurance can wait until later in life, compared with 41 per cent of Canadians overall.
"Life insurance isn't necessarily something people review regularly and knowing how much coverage you may need isn't always straightforward," said Patricia Foley, Associate Vice President, Delivery Excellence Life, Health & Credit Protection at TD Insurance. "When Canadians are juggling competing financial priorities, reviewing their life insurance may not feel urgent. Yet, major life milestones can be valuable moments to reassess whether existing protection still aligns with their circumstances."
The workplace coverage trap
A particularly striking finding concerns group benefits plans. Among Canadians who do hold workplace life insurance, 44 per cent either do not know how much coverage they have or are unsure whether it is adequate.
A further 34 per cent said they have delayed reviewing their broader insurance needs because they assume their employer-provided plan is sufficient.
This mirrors a pattern that advisors across Canada have flagged for years: workplace coverage is often minimal relative to an individual's actual financial obligations, and it disappears entirely when an employee leaves their position or retires.
Foley noted that employer-sponsored coverage can provide meaningful protection, but it should not be treated as a comprehensive solution. "As people approach retirement or experience career changes, reviewing what life insurance coverage they have, what may change in the future, and whether additional protection may be needed, can help avoid unexpected gaps," she said.
Demand for clearer guidance
The survey also found that 74 per cent of Canadians said they would benefit from clearer guidance on how factors such as age or health status may affect their life insurance options and costs - a signal that public understanding of insurance fundamentals remains limited.
This appetite for guidance is reinforced by broader research on the advice gap in Canadian insurance, which has consistently shown that Canadians who work with a licensed insurance advisor are better positioned to assess and maintain adequate coverage over time.
For financial advisors, the findings underline the value of proactively raising insurance adequacy as part of holistic financial planning discussions - particularly when clients are navigating career transitions, retirement timelines, or changes in family circumstances. As coverage gaps in Canada's life insurance landscape remain stubbornly wide, the advisor conversation may be the most effective catalyst available.
