Millions of Canadians reach major milestones without updating life insurance coverage
“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.
