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

Greater Vernon Water rates will increase an average of 2.4 per cent over the next four years after the Regional District of North Okanagan adopted a new water rate bylaw on Wednesday, Nov. 18. (File photo)
Regional District North Okanagan approves four-year water rate bylaw

Water rates for Greater Vernon Water users to climb an average of 2.4 per cent over the four years

A new primary health clinic at the Okanagan Indian Band Health Centre is now providing members with doctors on reserve. (Stock photo)
New Okanagan Indian Band primary care clinic now accepting patients

The clinic is giving OKIB members access to doctors and nurses on reserve

Sylvia Showers of Lumby is one of the 35 artists featured at Artsolutely, the 15th annual sale at the Vernon Community Arts Centre on daily Nov. 28-Dec. 24. (Contributed)
Artsolutely makes shopping local easy in Vernon

15th annual event features 35 artists and runs for 27 days

COVID-19. (Image courtesy CDC)
Interior Health reports 70 new cases overnight

The total number of cases in the region is now at 1,426

Cranbrook business and property owners are encouraged to flush their water lines ahead of reopening. All it takes is running the cold water tap for several minutes. (Cranbrook Townsman file)
UPDATE: Water advisory issued on Westside

Westshore Estates leak repair causes need to flush system

A man wearing a face mask to help curb the spread of COVID-19 walks in downtown Vancouver, B.C., Sunday, Nov. 22, 2020. The use of masks is mandatory in indoor public and retail spaces in the province. THE CANADIAN PRESS/Darryl Dyck
B.C. records deadliest day of pandemic with 13 deaths, 738 new COVID-19 cases

Number of people in hospital is nearing 300, while total cases near 30,000

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Central Okanagan Public Schools administration office in Kelowna. (File photo)
COVID-19 confirmed in 5 more Central Okanagan schools

All people who tested positive for the virus are self isolating at home

Penticton Law Courts
Bail hearing for Penticton man charged with sex assault, forcible confinement

Robert Sauve is facing more than 10 criminal charges

Revelstoke RCMP warn of scam after two people targeted in one day. (Black Press file photo)
Revelstoke RCMP warn of scammer pulling at heart strings

Two people in Revelstoke targeted in one day by person posing as a loved one

RCMP. (Phil McLachlan - Black Press Media)
RCMP investigate suspected arson at Shuswap hunting camp

Suspicious fire took place by Scotch Creek forest service road on Oct. 24

Court of Appeal for British Columbia in Vancouver. (File photo: Tom Zytaruk)
B.C. woman loses appeal to have second child by using late husband’s sperm

Assisted Human Reproduction Act prohibits the removal of human reproductive material from a donor without consent

A worker at Kelowna Airport has tested positive for COVID-19. (File)
Kelowna airport worker tests positive for COVID-19

Individual, who works as a screener, was asked to self-isolate, at which time they tested positive

An assault charge has been filed after a 10-year-old boy was allegedly struck with a watermelon at a Shuswap campsite in August . (File photo)
Alberta woman facing assault charge after allegedly hitting boy with watermelon at Shuswap campsite

Police say a disagreement among friends at an Adams Lake campsite turned ugly

Most Read