If you’ve got ever wondered how your selections compare to those of other Canadians, here’s what you will find in PolicyMe’s newly released 2026 study: Canadian Term Life Insurance: A Market Overviewgives some answers. The study analyzed over 18,000 customer interactions and illuminated insurance preferences, beneficiary decisions and intergenerational health habits.
$500,000 is the sweet spot
Across all age groups, a $500,000 term life insurance policy is essentially the most commonly chosen term life insurance policy. Younger Canadians (ages 18-44) also prefer longer terms (often 30 years), while older adults (45+) are inclined to select smaller insurance amounts and shorter terms.
The pattern is obvious: life insurance needs mirror periods of life. Young adults with mortgages, automobile loans or growing families gravitate toward larger, longer-term policies. As financial obligations decrease with age, coverage amounts and terms decrease. Respondents over 60 overwhelmingly selected term policies with amounts as little as $100,000. It’s probably not surprising that term lengths are also decreasing. Finally, retirees usually tend to be financially stable and never searching for many years of security.
Women prioritize children while men prioritize partners
Almost three-quarters of Canadians named a spouse or partner as a beneficiary. However, gender differences emerge: 83% of men named a partner, in comparison with 66% of girls, who’re twice as prone to include their children as beneficiaries.
Ultimately, your alternative of beneficiaries is as much as you—but understanding these trends can make it easier to take into consideration what’s most significant to your loved ones.
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Illnesses amongst applicants are widespread
More than half of those surveyed said they suffered from a minimum of one illness. Mental health problems were commonest amongst younger adults: 37.1% of 18- to 29-year-olds reported a mental illness, in comparison with just 3.8% of applicants over 60. Older respondents reported higher rates of diabetes and hypertension.
Data suggests that younger generations are more transparent about health and mental well-being, which can impact insurance options and policies as generations age.
The five mostly reported conditions included allergies and immune disorders, diabetes, hypertension, respiratory or respiratory diseases, and mental illness.
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Drink less, smoke more
Lifestyle habits also affect life insurance rates. The PolicyMe study found that Generation Z drinks significantly lower than older Canadians: just 1% report consuming alcohol day by day (in comparison with 4.4% of those over 60) – but they eat more nicotine and cannabis.
7.3% of younger respondents reported using nicotine products up to now 12 months, in comparison with 5.7% of those over 30. Cannabis use was even higher: 13% of Generation Z reported using it up to now 12 months, in comparison with just 4.8% of those over 60
Even vaping or occasional nicotine products can impact premiums. Understanding how your lifestyle selections affect insurance costs will make it easier to make smarter decisions when purchasing a policy.
Related reading: Do I actually need life insurance?
The final result
Life insurance just isn’t a one-size-fits-all solution. It’s clear that Canadians value meaningful coverage, but the precise policy will depend on personal aspects and your loved ones’s financial needs. By being clear about your priorities, you’ll be able to select a policy that gives peace of mind for you and your family members.
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