$500,000 is the sweet spot
Across all age groups, $500,000 is the most commonly chosen death coverage. Younger Canadians (ages 18-44) also prefer longer terms (often 30 years), while older adults (45+) typically choose smaller coverage amounts and shorter terms.
The pattern is clear: life insurance should reflect the stages of life. Young adults with mortgages, car loans or growing families tend to want larger and longer policies. As financial obligations decrease with age, coverage amounts and terms decrease. Respondents over the age of 60 primarily opted for a term policy of just $100,000. It is probably not surprising that term length is also decreasing. After all, retirees are likely to be more financially stable and not looking for decades of coverage.
Women prioritize children, while men prioritize partners
Nearly three-quarters of Canadians named a spouse or partner as a beneficiary. But gender differences emerge: 83% of men named a partner, compared with 66% of women, who were twice as likely to list their children as beneficiaries.
Ultimately, your beneficiaries are your choice, but understanding these trends can help you think about what’s most important to your family.
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Medical conditions are widespread among applicants
More than half of respondents indicate that they have at least one medical condition. Mental health problems were most common among younger adults, with 37.1% of 18-29 year olds reporting a mental health condition, compared to just 3.8% of applicants over 60. Older respondents reported higher rates of diabetes and high blood pressure.
The data shows that younger generations are more transparent about health and mental well-being, which could impact coverage options and policies as generations grow older.
The five most commonly reported medical conditions included allergy and immune disorders, diabetes, hypertension, respiratory or respiratory diseases and mental illness.
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Drink less, smoke more
Lifestyle habits also influence life insurance rates. The PolicyMe survey found that Gen Z drinks much less than older Canadians, with only 1% reporting daily alcohol use (compared to 4.4% of those 60+) – but they consume more nicotine and cannabis.
7.3% of younger respondents reported using nicotine products in the past year, compared to 5.7% of those age 30 and older. Cannabis use was even higher, with 13% of Generation Z reporting using it in the past year, compared to just 4.8% of those over 60
Even vaping or occasional nicotine products can impact premiums. Understanding how lifestyle choices affect the cost of coverage can help you make smarter decisions when purchasing a policy.
Related reading: Do I really need life insurance?
The bottom line
Life insurance is not one-size-fits-all. It’s clear that Canadians value meaningful coverage, but the right policy depends on personal factors and your family’s financial needs. By clarifying your priorities, you can choose a policy that gives you and your loved ones peace of mind.
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