The gig economy is a big economy.
According to a 2025 survey by Statistics Canada, approximately 28% of Canadians — roughly 8.7 million adults — engage in some form of gig work across the country. In the same Stats Can report it was shown that 62% of gig workers rely on their gig income either as a supplement or as their primary source of earnings.
Not unlike online dating, the gig economy has evolved rapidly from its initial status as a last resort for the desperate, to a first option for many Canadians.
The flexibility makes gig work attractive to anyone looking to set their own hours and the relatively low bar to entry makes these temporary jobs, primarily in the service industry, accessible to a large part of the workforce.
But, one area where the gig economy’s development has stalled is providing benefits, like insurance, particularly life insurance. More than one-fifth (22%) of gig workers said they do not have insurance any form of health or life insurance. Among those who depend on gig work as their main income, that figure rose to 55%, according to a PolicyMe report.
If you’re lucky, your gig employer may provide vision, dental and health coverage, but if something more severe happens, what’s your plan?
If your gigs are your household’s sole source of income, what happens if you get critically injured and can’t work for an extended period of time? Who pays the rent? And, if it’s worse than illness, what resources can your family rely on to ensure their bills — and your funeral costs — are paid?
The state of gig worker benefits in Canada
No employer is legally required to provide life insurance to their employees, but many do as a way of attracting, retaining and rewarding their staff.
In 2025, 59% of Canadians obtain life insurance through employer-supported group plans, reflecting a slight decline as remote and contract work expanded, according to a report published by PolicyMe.
But, with gig employers, offering life insurance appears to be less of a priority. As of 2025, Uber Canada now offers limited life insurance options for drivers who meet a minimum number of trips per month, although comprehensive coverage remains rare. Lyft and DoorDash continue to offer only limited accident insurance with no expanded life insurance benefits. Food delivery company Skip the Dishes offers even less auto coverage and no health or insurance benefits.
Be prepared
Providing drivers with more money to put toward life insurance is a positive step, but for it to have any real impact, gig workers need to see life insurance as a priority.
According to the Canadian Life & Health Insurance Association, approximately 73% of Canadians — about 29.5 million people — currently hold life insurance coverage. If you’re a gig worker and have so far avoided securing coverage, you may want to join that cohort sooner rather than later.
“Term, permanent, critical illness, disability. These are all things that you need to look at,” says Michael Aziz, chief distribution officer at Canada Protection Plan. “Losing that income can be really disastrous for families.”
Two arguments young, healthy Canadians have against buying life insurance is that it’s expensive and unnecessary. But, accidents and illnesses can come for anyone; they don’t ask to see your ID before putting you on your back. And, the younger you are, the cheaper life insurance generally is.
Choosing the right plan
There is no shortage of insurance products out there for gig workers. Insurance companies are happy to take your money no matter who signs your paycheque.
Finding the right life insurance plan is a matter of balancing the cost with your budget, lifestyle and potential insurance needs. That’s a calculation that’s likely to require some professional guidance.
“You need to do a needs analysis,” says Aziz. “Maybe you have some student loans, or you have a mortgage or a car loan or some other liability that you want to protect against. Build your portfolio to match that.”
Applying for insurance doesn’t need to get in the way of your gig-hopping. Non-medical and simplified issue policies allow you to buy life insurance without having to visit a doctor or answer too many health questions. However, be aware that these policies usually come with higher premiums since the life insurance companies have less information to evaluate your health, which poses a higher risk to them. Additionally, flexibility and policy options are limited compared to a fully underwritten life insurance policy.
Nothing’s guaranteed when you’re trying to make a living in the gig economy, including your health. Looking into your life insurance options is one way of chipping away at the mountain of uncertainty you face everyday.
To make it easier, consider shopping for life insurance through an online brokerage. For instance, PolicyMe is an online-only insurance company where Canadians can compare and buy term life and critical illness insurance policies in just a few minutes — and at an incredibly affordable prices.
PolicyMe offers a streamlined approach with no unnecessary bells and whistles so applicants can get a fully-underwritten policy that’s fast, easy and affordable.
Sources
1. Statistics Canada: Labour Force Survey, March 2025 (April 4, 2025)
2. Businesswire: PolicyMe Announces $30 Million CAD in Funding and Expanded Product Suite, Transforming Digital Insurance (April 16, 2025)
3. PolicyMe: Key Canadian life insurance statistics, by Cristina DaPonte (Apr 28, 2023)
4. Canadian Life & Health Insurance Association: Canadian Life & Health Insurance Facts 2025 edition
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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