Toronto, Ontario, Toronto, Ontario, September 14th, 2026, FinanceWire
Analysis found 42.0% of life insurance seekers mentioned family well-being, while a separate review found $500,000 was the most common coverage amount applied for and sold.
PolicyMe, a Canadian digital insurance company, today published an analysis finding that family well-being is the most frequently cited consideration among Canadians seeking life insurance, appearing in 42.0% of customer interactions reviewed, compared with 19.7% for mortgage obligations and 17.4% for end-of-life expenses. In a separate analysis, PolicyMe found $500,000 was the most common coverage amount applied for and sold, followed by $1 million and $250,000.
PolicyMe analyzed over 6,500 customer interactions involving Canadians aged 18 to 54 across Canada in 2025. The findings show that life insurance decisions reflect a range of household financial concerns rather than one universal reason for seeking coverage. In a separate analysis of over 48,000 customer interactions, PolicyMe ranked the most common coverage amounts applied for and sold.
The findings sit within a large Canadian life insurance market. The Canadian Life and Health Insurance Association reported that 23 million Canadians held approximately $6 trillion in life insurance coverage in 2024, with average protection per insured household reaching $509,000.
Family Well-Being Leads by a Wide Margin
Family well-being appeared in 42.0% of the customer interactions reviewed, making it the most frequently mentioned of the three identified considerations and more than twice the share mentioning mortgage obligations.
The finding highlights the financial consequences a death can have for surviving family members. A life insurance benefit may help replace income, but households can also depend on unpaid childcare, caregiving, transportation, home maintenance, and other contributions whose loss can create significant financial effects.
PolicyMe’s data does not establish one universal reason Canadians purchase life insurance. Instead, it shows how often family well-being appeared in conversations among the customers included in the analysis. The 42.0% share makes it the clearest theme in this dataset.
Mortgages and End-of-Life Costs Remain Significant
Mortgage obligations appeared in 19.7% of interactions, while end-of-life expenses appeared in 17.4%. Both were less common than family well-being but remained recurring considerations.
Housing debt can form part of the financial calculation when households consider how a death could affect surviving family members. Statistics Canada reported that Canadian households borrowed $110.6 billion in mortgage funds during 2025, up from $94.0 billion in 2024.
End-of-life expenses represent another immediate financial consideration. Funeral costs can arise soon after a death, while mortgage payments, household bills, childcare, and income-replacement needs may continue for years. A single life insurance benefit may therefore be intended to address several financial obligations at once.
$500,000 Is the Most Common Coverage Amount
PolicyMe’s separate analysis of over 48,000 customer interactions found $500,000 to be the most common coverage amount applied for and sold, followed by $1 million and $250,000.
The $500,000 figure is close to the CLHIA’s reported average protection of $509,000 per insured Canadian household in 2024. However, the figures measure different things: PolicyMe’s figure represents the most common coverage amount in its analysis, while the CLHIA figure is an average across insured households.
The range of amounts selected also shows that coverage needs differ between households. Income replacement, dependants, mortgages, other debts, housing costs, savings, and existing insurance can all affect the amount of protection appropriate for an individual household.
Frequently Asked Questions
What did PolicyMe’s analysis find?
PolicyMe found that family well-being was mentioned in 42.0% of customer interactions, compared with 19.7% for mortgage obligations and 17.4% for end-of-life expenses. $500,000 was the most common coverage amount applied for and sold, followed by $1 million and $250,000.
Why do Canadians buy life insurance?
PolicyMe’s data points to several considerations, including protecting family well-being, covering mortgage obligations, and addressing end-of-life expenses. Government guidance also identifies income replacement, support for dependants, funeral expenses, and debt repayment as potential uses of a life insurance benefit.
How much life insurance coverage do Canadians typically choose?
PolicyMe found that $500,000 was the most common amount, but the appropriate level can vary according to income, dependants, debts, housing costs, existing assets, and other financial responsibilities.
About PolicyMe
PolicyMe is a Canadian digital insurance company founded in 2018 and based in Toronto, offering term life, dental, home, and auto coverage.