Tim Potter poses for a portrait at the Eastern Passage in Halifax on Thursday, Dec. 26, 2019. Like millions of Canadians, Potter is living with a serious medical condition that has made it difficult, if not impossible, to secure meaningful life insurance.The Halifax father of seven was diagnosed 26 years ago with Type 1 diabetes.THE CANADIAN PRESS/Ted Pritchard

Tim Potter poses for a portrait at the Eastern Passage in Halifax on Thursday, Dec. 26, 2019. Like millions of Canadians, Potter is living with a serious medical condition that has made it difficult, if not impossible, to secure meaningful life insurance.The Halifax father of seven was diagnosed 26 years ago with Type 1 diabetes.THE CANADIAN PRESS/Ted Pritchard

Canadians with health issues face difficulty finding affordable life insurance

There’s a trend of people needing insurance for a longer period

Like millions of Canadians, Tim Potter is living with a serious medical condition that has made it difficult, if not impossible, to secure meaningful life insurance.

The Halifax father of seven was diagnosed 26 years ago with Type 1 diabetes.

While his wife quickly obtained insurance coverage a decade ago, the stay-at-home dad was denied coverage. It has left him worried about his wife and young family’s welfare when he’s no longer around.

“I feel like I would be leaving her and the kids quite empty-handed if anything were to happen to me,” he said.

Potter feels stressed because all he’s been able to secure is a couple of policies that will pay just enough to cover his funeral expenses.

Securing affordable life insurance is a growing problem as more Canadians are diagnosed with serious ailments.

Half of Canadians will develop cancer at some point in their lives, the Canadian Cancer Society says. The Heart and Stroke foundation points to an increase in the number of people with heart conditions and strokes. And about eight per cent of Canadians have been diagnosed with diabetes, a condition that’s growing in frequency amid an aging population.

“It’s an epidemic,” said Joan King, director of government relations for Diabetes Canada. The number of Canadians with diabetes has doubled since 2000, she noted.

As well as diabetes, people with severe mental illness, HIV, heart conditions and other serious ailments can be left in the lurch. Other red flags for insurers can include travel to certain parts of the world or risky recreational activities.

There’s also a trend of people needing insurance for a longer period because they have families later in life or haven’t paid off their mortgage yet.

“The issue of pre-existing conditions is a bit of a growing issue because people are needing term insurance longer in their life because of the financial pressures today,” said Kevan Penonzek, manager of Insurance Direct Canada in Vancouver.

“They’re working later, they’re carrying debt longer, mortgage longer so they feel like they need term insurance to cover off that risk. And so it becomes harder when you’re 60 to 70, because people then have health issues.”

It’s a definite problem, says Michael Aziz, co-president of Canada Protection Plan, which seeks to fill the void left by traditional insurers by offering coverage that doesn’t require a medical examination.

Aziz said more carriers are adopting its simplified approach that offers certain coverage within days of answering a detailed questionnaire.

“We’ve seen our premium numbers or policies grow by 40 to 50 per cent for the last five years so that’s a good sign and we’ve seen other carriers starting to look at the non-medical space as well,” he said.

But the simplified coverage comes at a price. Premiums can be 50 to 300 per cent higher than traditional term policies and coverage limits are lower.

Insurance companies have become much more liberal about covering people with health issues, said Lorne Marr, director of new business for LSM Insurance, which owns No Medical Exam Life Insurance.

“Years ago if you had diabetes … you were declined for insurance, but now most, almost all, diabetics can get some form of life insurance,” he said.

Marr said the situation changed because insurance companies have more data to evaluate life expectancy while medications and treatments have also improved.

“There used to be only one or two companies offering these type of policies, now there’s probably 10 different companies.”

ALSO READ: 10 ex-NFL players charged with defrauding healthcare program

No Medical Exam Life Insurance offers two forms of term insurance — Guaranteed Issue for people facing, for example, a serious cancer diagnosis; and Simplified Issue, a less expensive policy used for people with more manageable and less severe conditions.

With new and better treatments come changes from insurers. Canada Protection Plan has followed Manulife and Sun Life, which in 2016 began to offer insurance to some HIV-positive clients.

Traditional carriers require these patients have five years of stability on anti-retroviral therapy, an undetectable viral load and receive treatment by an HIV expert. Manulife precludes those with hepatitis, a history of intravenous drug use or other substance abuse, history of coronary artery disease, diabetes, cancer and AIDS-defining illness.

Canada Protection Plan doesn’t have these restrictions and offers $50,000 of coverage. That’s much less than the million-dollar limit by Sun Life and up to $2 million for Manulife applicants aged 30 to 65.

Still, not everyone benefits from the insurers’ more open approach. Intravenous drug users, for example are denied coverage, which can be a problem for some people living with HIV, said Tammy Yates, executive director of community advocacy group Realize.

She argues that insurance companies should shorten the five-year treatment requirement to two years since medical advancements have improved life expectancy.

The history of the illness and the public stigma towards those living with HIV has ensured that very few people even contemplate seeking insurance coverage, said Shaun Proulx, a Realize board member.

In the early days of the illness, there was no chance of even considering insurance, he said.

“But there was a frustrating period after that when people were living longer and having healthier lives and were still being denied insurance as well and it made no sense.”

Proulx says the insurance companies aren’t doing enough to educate those living with HIV about availability.

“That’s an enormous amount of business that they’re leaving behind on the table.”

Ross Marowits, The Canadian Press


Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Parliament Hill is shown in Ottawa on Wednesday, March 11, 2020. The Trudeau government has agreed with the Senate that Canadians suffering solely from grievous and irremediable mental illnesses should be entitled to receive medical assistance in dying — but not for another two years. (THE CANADIAN PRESS/Sean Kilpatrick photo)
Self-advocates ‘sad, scared, angry’ over revisions to assisted-death legislation

Bill C-7 was expanded to include access to medically assisted death for non-terminal conditions

Police barricade (File photo: Tom Zytaruk)
Surrey RCMP investigate shooting overnight at Whalley motel

Sergeant Elenore Sturko said a 38-year-old man was taken to hospital suffering from a serious injury

The South Point Exchange Wendy’s location was ordered closed for 10 days due to COVID-19. The closure took effect on April 9, 2021. (Google Streetview screenshot)
COVID-19 prompts 10-day closure of South Surrey fast-food restaurant

Fraser Health confirms order for South Point Wendy’s was issued April 9

Surrey School District building. (File photo)
‘We’re in a financial lockdown’: Surrey school district working with $40M budget deficit

District, board points to lack of immigration for new student enrolment

DriveBC says a vehicle incident could cause some delays on Highway 1 near 152nd Street heading westbound Thursday morning (April 15). (Map: Google Maps)
Part of HOV lane blocked on Highway 1 in Surrey

DriveBC tweets westbound lane near 152nd Street is blocked

A sea lion swims past the window of an empty viewing area Vancouver Aquarium is pictured Thursday, September 10, 2020. The Vancouver Aquarium has had to close its doors to the public due to the lack of visitors during the COVID-19 pandemic. THE CANADIAN PRESS/Jonathan Hayward
U.S.-based theme park company buys Vancouver Aquarium

Aquarium had to shut its doors in September due to COVID pandemic

A man wears a protective face covering to help prevent the spread of COVID-19 as he walks past the emergency entrance of Vancouver General Hospital in Vancouver, B.C., Friday, April 9, 2021. THE CANADIAN PRESS/Jonathan Hayward
COVID-19 spike in B.C. could overwhelm B.C. hospitals: modelling group

There are 397 people are in hospital due to the virus, surpassing a previous high of 374 seen in December

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

A deep cut on a humpback whale is shown in this recent handout photo in the Vancouver area. A conservation organization is warning boaters to be extra careful to prevent further harm to an injured humpback whale swimming in the Vancouver area. THE CANADIAN PRESS/HO, Ocean Wise, Vanessa Prigollini *MANDATORY CREDIT*
Boaters urged to use caution around hurt humpback off Vancouver

Ocean Wise says watchers first noticed the wound 3 days ago and believe it was caused by a vessel strike

Ron Rauch and his wife Audrey are photographed at their home in Victoria, Friday, March 5, 2021. Their daughter Lisa Rauch died on Christmas Day 2019 when a tactical officer with the Victoria Police Department shot her in the back of the head with plastic bullets after barricading herself in a room that was on fire. THE CANADIAN PRESS/Chad Hipolito
B.C. families push for changes as special committee examines provincial Police Act

Solicitor General Mike Farnworth acknowledged the need to update the legislation last year

Major-General Dany Fortin, left, looks on as Minister of Public Services and Procurement Anita Anand provides an update on the COVID-19 pandemic, in Ottawa, Tuesday, Dec. 15, 2020. The Public Health Agency of Canada has set aside up to $5 billion to pay for COVID-19 vaccines. THE CANADIAN PRESS/Sean Kilpatrick
Canada negotiating contracts to secure COVID-19 booster shots for next year: Anand

Most of Canada’s current vaccine suppliers are already testing new versions against variants

Demonstrators at the legislature on April 14 called on the province to decriminalize drug possession and provide widespread access to regulated safe supply across B.C. (Jake Romphf/News Staff)
Rally calls for decriminalization, safe supply on 5th anniversary of overdose emergency declaration

From 2016 to the end of February, 7,072 British Columbians died due to overdose

(Government of Canada)
Liberal MP caught stark naked during House of Commons video conference

William Amos, in Quebec, appeared on the screens of his fellow members of Parliament completely naked

Most Read