Insurance planning in Canada is becoming a frequently discussed topic as households react to inflationary pressures, evolving work arrangements, and the expanding need for health care. Shifting demographics, rising long-term care costs, and greater income instability have also played a role in driving up discussions of insurance and how it fits within broader financial well-being.
“Insurance shouldn’t just be a one-time conversation,” says Lucy Lukic, an insurance advisor from Hamilton, Ontario. “Whenever there are life changes, changes to family structures or financial responsibilities, your coverage needs to reflect that.”
The Canadian Life and Health Insurance Association (CLHIA) reports that insurers paid more than $128 billion in benefits to Canadians in 2024. Of that amount, $23 billion went out in life insurance claims. The report shows increased engagement with health and critical illness policies, as well as continued interest in long-term savings through permanent life insurance.
Statistics Canada reports that over 2.7 million Canadians are self-employed as of 2025. Members of this group are more likely to lack access to group benefits and are more exposed to loss of income as a result of illness/injury. Disability insurance, critical illness insurance, and income replacement strategies have become top topics among those who do not have employer-sponsored offerings.
“When someone is self-employed or runs a small business, they face different vulnerabilities. There’s often no safety net unless one is created intentionally. That’s where personal coverage plays a significant role,” says Lukic.
Long-term care is another emerging concern. The Canadian Institute for Health Information (CIHI) estimates that the average Canadian spends $9,054 annually on healthcare. While public systems offer some support, many expenses remain out-of-pocket. This includes private home care, facility upgrades, or medical equipment not covered under provincial programs.
“People want to know that their future care is addressed without placing stress on their family. These conversations are sensitive, but they are necessary. Planning ahead allows people to keep more control over their care decisions,” says Lukic.
Permanent life insurance has seen increasing uptake among Canadians looking to integrate more flexible tools into their financial strategy. These policies offer tax-advantaged growth through a cash value component. Policyholders can access this value later in life through withdrawals or policy loans.
For a small business owner, a corporate-owned life insurance policy can provide a framework to help with succession planning, shareholder agreements and liquidity. These policies are generally owned by the corporation and are intended to finance future changes or responsibilities.
Education remains a barrier to access. A survey by Capco found that out of 1000 Canadians, 46% were not confident in picking the right insurance product. Respondents cited a lack of clear information, confusion over policy types, and uncertainty about pricing as common obstacles.
“I explain the core purpose behind each product. There’s no benefit in presenting unnecessary complexity. Clients want to make informed choices that reflect their values and responsibilities,” says Lukic.
Families with dependent children increasingly prioritize coverage that secures income, supports education planning, and allows for estate clarity. In these cases, advisors stress the importance of reviewing existing coverage to assess whether it reflects current financial obligations.
Canadian households are also showing interest in layering different insurance products. Term life insurance continues to offer affordability for high-coverage needs, while permanent insurance addresses estate and retirement planning. Riders and add-ons, including long-term care and critical illness components, are helping bridge planning gaps.
“Insurance is a tool for continuity. Whether someone is looking after a family, managing a business, or thinking about retirement, the purpose of insurance is to provide structure where risk exists,” Lukic concludes.
Amid economic uncertainty, insurance advisors across the country are experiencing an increased demand of people seeking clarity and security through custom protection strategies. While the range of products continues to grow, so does the need for personalized, ongoing guidance.
