Study Reveals 2026 Canadian Term Life Insurance Trends

Choosing a term life insurance policy involves balancing several practical questions: how much coverage do you need, who should receive the benefit, and how long should the protection last? The answers depend on your life stage, financial obligations, health and lifestyle, and the people who rely on you.

PolicyMe’s 2026 report, Canadian Term Life Insurance: A Market Snapshot, analyzed more than 18,000 customer interactions to reveal common coverage choices, beneficiary patterns and generational health and lifestyle trends. The findings can help you benchmark your own decisions and think through what matters most when selecting a policy.

$500,000 is the sweet spot

Across age groups, $500,000 is the single most common coverage amount chosen for term life policies. Younger Canadians, especially those aged 18–44, tend to select larger coverage and longer terms—often 30 years—reflecting debts like mortgages and the financial needs of growing families. Older adults move toward smaller policies and shorter terms as major debts are paid down and retirement income or pensions replace the need for long-term coverage.

Age of respondents	Coverage	Term length
18–29	$500,000	30 years
30–44	$500,000	30 years
45–59	$250,000	10 years
60+	$100,000	10 years

The trend is straightforward: insurance choices often track typical life-stage needs. Young adults are more likely to choose higher coverage and longer terms to protect against long-term financial obligations such as mortgages, student loans and the ongoing costs of raising children. As people age and debts are reduced or eliminated, they commonly opt for lower coverage amounts and shorter terms because retirement income and savings play a larger role in supporting dependents.

Women prioritize children while men prioritize partners

When it comes to beneficiaries, most Canadians name a spouse or partner—about three-quarters of respondents. However, the data shows gender differences in beneficiary choices: 83% of men named a partner, compared with 66% of women. Women were also about twice as likely as men to name their children as beneficiaries. These patterns reflect different household roles and priorities, and they underline the importance of choosing beneficiaries that match your personal and financial goals.

Deciding who to name should be deliberate. Consider immediate needs for income replacement, long-term care for dependents, estate planning implications and any blended-family dynamics. Clarifying your priorities now can reduce confusion for loved ones later.

Medical conditions are widespread among applicants

More than half of applicants reported at least one medical condition. Mental health issues were notably more common among younger adults: a substantial share of those aged 18–29 disclosed some form of mental health concern, while older applicants reported higher rates of chronic conditions such as diabetes and hypertension. This distribution aligns with broader public-health trends and greater willingness among younger people to discuss mental health.

Insurers consider health history when assessing eligibility and premiums, so being transparent about medical conditions helps ensure accurate coverage and avoids future claim complications. If you have health concerns, discussing them with an insurance advisor can help you understand your options and how those conditions might affect cost and coverage.

The five most commonly reported conditions were allergy and immune disorders, diabetes, hypertension, respiratory conditions and mental health conditions.

Drinking less, smoking more

Lifestyle choices also influence premiums and underwriting decisions. The study found younger Canadians report lower rates of daily alcohol use than older adults, but higher usage of nicotine and cannabis products. Any tobacco or nicotine use, including vaping and occasional nicotine products, can affect your premiums. Cannabis use may also influence underwriting, depending on frequency and regional insurer policies.

For prospective buyers, it’s useful to understand how habits such as smoking, vaping, alcohol consumption and recreational drug use can change underwriting categories and cost. Reducing or quitting tobacco and nicotine products before applying can lead to better rates, but always be honest on your application to avoid coverage issues later.

Related reading: Do I really need life insurance?

The bottom line

There’s no single “right” life insurance policy. The best choice depends on your income, debts, dependents, long-term goals and health. Younger adults often need larger, longer-term coverage to protect families and pay off long-term debts, while older adults may opt for smaller policies or shorter terms to cover final expenses or bridge a temporary gap.

Practical steps when shopping for term life insurance: estimate how much income your dependents would need, account for outstanding debts and future expenses (like education), compare multiple quotes, and review how your health and lifestyle affect premiums. Clear priorities and honest information will help you secure a policy that offers the protection and peace of mind your family needs.

Read more about life insurance:

• Term vs. permanent life insurance: How to choose what’s right for you
• How does age affect life insurance rates?
• Do retirees need life insurance?