Homeowners buy more life insurance to protect their biggest asset

Homeowners in Canada are opting for larger life insurance policies to protect their primary asset, according to PolicyMe’s early-2026 data set. The insurtech’s analysis shows mortgage holders selected an average $762,660 in coverage, well above the $553,124 chosen by applicants without a mortgage.

PolicyMe based its findings on roughly 1,450 customer interactions recorded between January 1 and March 31, 2026. The survey sample found that 42.3% cited a mortgage as a top reason for buying term life coverage, trailing only family well-being at 79.2%. Homeowners most frequently selected $1 million in coverage, while non-homeowners tended to choose $500,000.

Further breakdowns in the analysis reveal age-related gaps: applicants aged 25–29 showed the largest disparity, with homeowners averaging $783,824 of coverage versus $490,190 for non-homeowners. The 45–49 bracket also exhibited a notable gap, which PolicyMe attributes to later-life purchases, refinancing or second-home borrowing. The company also cautions that customer data are self-reported and not independently verified, so findings primarily reflect PolicyMe’s applicant pool.

From a market perspective, higher coverage amounts among mortgage holders can increase premium volumes for life insurers and alter product demand toward longer-term, higher-limit policies. Insurers and brokers may respond by refining underwriting, offering mortgage-linked alternatives and emphasizing affordability through term lengths and convertible features.

In broader economic terms, rising home prices, shifting homeownership ages and changing borrowing costs are feeding the trend. As homeowners face larger outstanding balances and higher living expenses, they appear to view life insurance not merely as debt protection but as income replacement and household stability insurance.

Looking ahead, industry observers expect continued appetite for tailored life products that cover both mortgage obligations and broader income needs. Increased consumer education about policy types and targeted distribution strategies by insurers could both reduce protection gaps and shape market competition in the coming quarters.