Drug Use and Life Insurance

cocaine Nightlife of Revelry

Drug use has gone down in Canada.

According to the CBC, about 11 per cent of the Canadian population uses drugs.

The most prevalent drug used outside of alcohol is cannabis, as 39 per cent of Canadians have used cannabis in their lifetime, with the average first time they tried it at 15 years old. When it comes to the rest of the drugs, such as crack/cocaine, ecstasy, salvia, speed, and hallucinogens, use is under 1 per cent combined.

The top five most popular drugs in Canada are cannabis, crack/cocaine, speed, hallucinogens, and ecstasy. Of course, those in Toronto had been talking about cocaine and crack, thanks to Mayor Rob Ford’s alleged activities.

In general though, the rate of drug use in Canada has been on the decline since 2004, which means many former addicts and users may one day look for life insurance. Of course, life insurance companies aren’t really big fans of drug use, and any current use of harsh illicit drugs like heroin, cocaine, or ecstasy will result in an automatic decline for insurance.

Though options are limited for current drug users, they should be able to get a simplified issue policy that has no medical tests and only a few health questions. By “health questions,” we mean questions that don’t include a drug question. Simplified issue rates and questions vary significantly by carrier, Some companies offer coverage from day one whereas others have a two year wait period.

Insurance broker Tamara Humphries points out “there has been a huge influx of carriers and products in the hard to insure market. Equitable Life, Humania Assurance and La Capitale have all recently introduced new products. It’s crucial that you work with a broker who is up to speed on the product changes and can match you up with the best plan for your particular health or lifestyle issue.”

Traditional Life Insurance which asks a full series of health questions may be available to past hard drug users if they have not used drugs within the last 5 years.

It may make sense to have your broker submit a preliminary inquiry prior to you submitting an application.  This is an informal inquiry and  will produce a non binding offer which will give you and your broker a good idea if your application will be approved standard, declined or rated. If your application is declined this will limit your Simplified Issue Life Insurance options as most plans have a questions asking if the insured has been declined in the last two years.

You can get more details on simplified issue coverage by visiting our Non- Medical Life Insurance Quote Page.For more information on underwriting decisions regarding drug use, visit our article on Cocaine and Life Insurance.

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8 comments on “Drug Use and Life Insurance
  1. Suheir Kilani says:

    The insurance companies should not provide to drug users. This thing will also probably help in reducing the consumption of drugs.

    • No Medical Life Insurance says:

      The insurance company is factoring in an extra risk cost when issuing coverage. On certain no medical plans they also may include a deferred death benefit.

  2. John Laverty says:

    @ Suheir
    First of all I don’t think people who are in the hard drug world (name you drug) ever think of buying life insurance or medical insurance. Let’s get real, they are only interested in one thing and one thing only and it is not coverage. Cannabis was mentioned as a drug that would also fall under the same guide lines. So if a person had a prescription to use Medical Marijuana would they be put the same pot (no punt intended) and be denied coverage? Is it the illegal drug that what is being judged to deny coverage? If so, shouldn’t legal prescription drugs that are being used for pain control just as important. I’ve seen many folks that get hurt in accidents, prescribed pain medication only to have the patient become addicted. So what is the difference between prescribed habit forming drugs verses illegal drugs. Don’t forget the same prescribed habit forming drugs can and do shorten one’s life and if not prescribed are also illegal. I think these kinds of changes to the insurance coverage policies should be debated with an open and level head. Think of the impact it would have on folks, and not just the bottom line. And if the bottom line is the driving force behind this approach to change eligibility, then no discussion is needed.

    • No Medical Life Insurance says:

      Thanks John. Insures due factor in usage of prescription based drugs into their underwriting. Granted not to the same extent as non prescription based drugs.

  3. Justin says:

    I was decliuned for life insurance for marijuana this seems ridiculous. Can this be right?

    • No Medical Life Insurance says:

      Depending on the amount marijuana use and if it is combined with any other health issues.

      A simplified issue plan may be a good solution many plans do not have a drug related question.

  4. Merv says:

    I have a canadian medical marijuana license and I only smoke 60% of the days that I can and only enough to help me sleep (2-5 tokes)
    I am49 years old and to get a $250,000 policy they expect me to pay $500 a month because they consider me a smoker .even when I do smoke I use a water pipe to make it as clean as possible on my system
    And by the way no other issues heart,weight etc

    • No Medical Life Insurance says:

      Thanks for the note Merv. Any tobacco use in the last 12 months and you will likely be classified as a smoker.

      Some exceptions may be for large cigars and pipes. Having said that smoker rates can vary significantly among certain companies.

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