New data reveals life insurance can support mental well-being amid financial stress
A new national study from Blue Cross suggests that overall, Canadians are sensitive to building resiliency and future-proof financial planning. Younger generations, while the most financially stressed (89%), also face barriers to seeking long-term financial protection.
Amid rising financial stress, many Canadians, especially younger adults, are turning to life insurance not only for future financial security, but as a source of mental health and well-being. The 2025 BlueCross® Life Insurance Study (the “Study”), conducted with Research + Knowledge = Insight, surveyed 2,162 adults aged 25 and older between May and July 2025 to better understand how Canadians are coping under the current social and economic climate and their perceptions around long-term financial strategies. The findings reveal that while Canadians see life insurance as a stable financial tool, confusion around coverage can lead to gaps, especially during major life events or job changes, leaving people with less protection than they may need.
“Canadians want to feel confident and in control of their financial future,” says Tim Mawhinney, president and CEO of Blue Cross Life. “However, many remain unclear about the life coverage they have, what it includes and how it fits into their long-term needs. This leads to gaps at life's most vulnerable moments, when protection is needed most.”
Canadians recognize life insurance as source of stability in uncertain times
Economic apprehension is indeed a reality that many Canadians are grappling with. The Study shows signs of widespread financial stress, with two-thirds (66%) of Canadians reporting increased stress or anxiety in the past twelve months, driven by inflation, recession concerns and housing costs, a stress significantly higher among 25+ Gen Z respondents (89%).
When asked about what would help them prepare for uncertainties and challenges, the Study reveals a gap between insured and uninsured people. Insured Canadians are more likely to feel in control of their finances (85% v. 76%) and prepared for unexpected life events (62% v. 41%). Most (89%) individuals with life insurance also say it supports their mental well-being, especially by providing peace of mind that their loved ones would be financially protected (44%) and reducing their worry about debts and final expenses (36%). Gen Z respondents were the most likely to cite mental health benefits associated with having life insurance (92%).
Further emphasizing life insurance’s role in providing financial stability, over half (52%) of uninsured Canadians say they would not be able to maintain their current lifestyle for one year if their household’s primary income earner passed away.
Overall, the majority of Canadians (89%) recognize the value of securing life coverage in their twenties, particularly for added peace of mind as they age or when planning for life milestones such as marriage, having children or home ownership.
“These findings underscore the emotional reassurance that comes with being financially prepared overall. Canadians see life insurance not just as financial protection, but as a way to create a sense of calm. It provides peace of mind that essential expenses and long-term needs can be covered – even during times of crisis,” says Mawhinney.
Workplace life insurance is a strong first step, but may not keep pace with life changes
Despite an overall awareness of the need for financial protection, more than half (54%) of Canadians without life insurance say they have no plans to get it.
One reason might be Workplace life insurance: despite being a very valuable starting point, it may not always be enough to support longer-term needs all on its own. Some Canadians rely solely on Workplace benefits as part of their financial security (33% of Gen Z and 37%of Millennials), but 89 per cent express concerns about whether their current coverage is sufficient. Additionally, 56 per cent of those with Workplace benefits worry about losing coverage if they were to change or lose their job. While some Workplace plans allow coverage to increase during major life events, many are tied to employment and are not transferable when changing or ending employment. When conversion to personal coverage is possible, rates are often higher than market rates and coverage amounts are limited.
Lack of clarity leaves younger Canadians more stressed and vulnerable
In addition to reporting the highest level of financial stress, nearly two-thirds (64%) of Gen Z who do not have life insurance report their top concern is that life could change suddenly, twice as much as their older counterparts. Most (92%) also acknowledge the risks of being uninsured. Younger Canadians also appear to be more open to purchasing coverage, with only 12 per cent saying they have no intention to get life insurance.
Yet, when asked about reasons for not actioning their plans to secure coverage, Gen Z (31%) cite cost and competing financial priorities like debt or living expenses (29%). Lack of understanding (26%) and postponing taking action (23%) are also key barriers to getting coverage.
“Despite awareness that long-term planning is crucial, confusion and perceived cost remain major barriers. Younger Canadians need more clear, relatable and accessible pathways to coverage – ones that reflect how they live, work and plan for the future,” concludes Mawhinney.
Learn more about the Study.
Manitoba Blue Cross funds warehouse space for Sleep in Heavenly Peace
The Sleep in Heavenly Peace building, sponsored by Manitoba Blue Cross, will provide ample space for bed construction, assembly and storage, streamlining the entire process and ensuring that more kids have access to a safe and comfortable place to sleep.
“A warm, safe bed should not be a luxury – it is a fundamental right. That’s why Manitoba Blue Cross is stepping up to support Sleep in Heavenly Peace for years to come,” says Benjamin Graham, president and CEO of Manitoba Blue Cross. “We are providing essential resources that Sleep in Heavenly Peace needs to expand their operations and reach more children in the community. This investment aligns with our own commitment to support the health and well-being of all Manitobans, and we are proud to play an ongoing role in ensuring no child sleeps on the floor.”
This new facility will allow SHP to:
- increase production capacity: With a large, dedicated space and the ability to build beds in the colder months, SHP volunteers can now build and assemble more than twice as many beds, reducing wait times for families in need.
- improve storage capabilities: The facility will provide secure storage for completed beds before delivery can occur while allowing for more efficient and timely delivery.
- enhance the volunteer experience: The workspace will create a more comfortable and efficient environment for volunteers – who are the backbone of SHP’s operations – to build and store beds all year long.
“This generous support from Manitoba Blue Cross is a game changer for us,” says Jim Thiessen, co-president of the local chapter of Sleep in Heavenly Peace. “This new space will allow us to drastically increase the number of beds we build and deliver, ensuring that more children in our community have a safe and comfortable place to sleep. We currently build approximately 400 beds a year and we hope to now increase that to 1,000. We are incredibly grateful for Manitoba Blue Cross’s continued commitment to our mission.”
Join us in helping local children find comfort: Manitoba Blue Cross holds annual bedding drive
Support this valuable cause during our annual bedding drive. Donate new, twin-sized bedding items, including comforters, pillows and sheet sets for local children. Donations can be dropped off weekdays between 9:00 a.m. and 4:00 p.m. at Manitoba Blue Cross (599 Empress Street in Winnipeg) until June 20.
Online donations toward bedding purchases can be made at https://bit.ly/50beds.
“Our focus at Manitoba Blue Cross is the health and well-being of all Manitobans. We’re committed to building healthier communities – one bed and one good night’s sleep at a time,” says Benjamin Graham, president and CEO of Manitoba Blue Cross. “The outpouring of support that Manitobans showed last year did not disappoint and this generosity helped to create safe havens for local kids. I’m certain the same community spirit that Manitoba is known for will be seen again this year.”
Manitoba Blue Cross holds second annual bed build event
“The bed build event that was held in 2024 to celebrate our 50th anniversary had a profound impact on our staff and myself. Building those beds at Blue Cross Park was incredibly inspiring. We had to turn away staff who wanted to participate,” says Benjamin Graham, president and CEO of Manitoba Blue Cross. “That hands-on work really connected us to this important cause, and I believe it also helped us build stronger bonds within our team.”
Employee volunteers from the health benefits provider, along with SHP volunteers, will be constructing 50 beds for local kids on June 6, 2025 at Blue Cross Park.
To encourage the community to support this valuable cause, Manitoba Blue Cross is also holding a bedding drive once again. Donate new, twin-sized bedding items, including comforters, pillows and sheet sets for local kids. Donations can be dropped off weekdays between 9:00 a.m. and 4:00 p.m. at Manitoba Blue Cross (599 Empress Street in Winnipeg) until June 20.
Online donations toward bedding purchases can be made at https://bit.ly/50beds.