On October 17, 2018, the Canadian government legalized the use of recreational marijuana. While this changed things in a big way for people who smoked weed, it also had an effect on non-consumers and adjacent industries.

So far, legalization has contributed to the changing street presence of several Canadian brands, adjusted liquor store hours, and made some surprising changes to the insurance industry.

How do insurance companies treat legal cannabis use?

Medicinal marijuana use has been legal in Canada since 2001 but Canadian insurance companies have only recently started covering its use in their health benefits plans. This is likely in response to the huge increase in medical marijuana prescriptions in recent years. The number of registered clients for medical marijuana has just about doubled from April 2017 to June 2018 (source: government market data). Sun Life added it to their group benefits plans in early 2018, approving its use for pain associated with cancer, multiple sclerosis, rheumatoid arthritis, HIV and a variety of other conditions.

In turn, Manulife announced a partnership with Shoppers Drug Mart to educate consumers about medical marijuana. They also cover the use of the drug sparingly in some benefit plans. Great West Life has announced their intentions to include it in their group benefits plans and the Co-Operators followed suit at the end of October.

With the biggest insurers in the country announcing plans to or offering benefits coverage for marijuana just before or after legalization, it’s clear that the industry has already responded by shifting their perception of the drug, even if it’s happened begrudgingly.

How do life insurance companies classify recreational marijuana use?

But what about recreational use? That’s what’s really changed. How are insurers approaching cannabis use when it’s not medically prescribed?

While there have been some changes in the industry, it’s not widespread. The CLHIA, for instance, is quick to point out that recreational use is still not covered by any benefit plans.

However, one big change has been the classification of marijuana users as non-smokers. Traditionally, those who actually admitted to its once illegal use were classified as smokers. Now, cannabis consumers are considered non-smokers by most insurers, with some limits (they vary by company) to the amount of bud they can enjoy.

How much marijuana can you consume to not be considered a smoker?

Smoking or consuming marijuana (including edibles) up to 3 times in one week still lets you get rated as a non-smoker in the eyes of an insurance provider.

Once you hit the number 4 in a week, most life insurance companies will charge a rating (a classification that leads to a substantial price increase in your insurance premium). If you are a daily marijuana smoker you’ll have a tough time getting approved for traditionally underwritten life insurance.  In such cases, non-medical life insurance providers can be a coverage option, albeit at an even higher premium than fully underwritten policies.

This is still a huge change; it will lead to substantially lower premiums for casual smokers who had been previously classified as a smoker. Monthly life insurance premiums can sometimes double for smokers vs. non-smokers.

Learn more about life insurance for cigarette smokers.

How other types of insurance are affected by marijuana use.

The Huffington Post reported that many observers expected there to be changes to the auto and home insurance industries when marijuana was legalized; while there are signs of cannabis-related home insurance claims, it does not seem to have affected auto insurance drastically. As more data emerges, changes will undoubtedly come based on cannabis consumption.

High times

It remains to be seen if any other changes are in store for life insurance rates for 420 advocates, but the industry is closely observing statistics on marijuana use. As more and more medical patients use the drug, it will become a more prominent option in drug plans and as more recreational users come out of the shadows, life insurance plans will openly and accurately assess its health benefits and risks.

If you still have questions about how your cannabis usage may affect your life insurance premiums, talk to our licensed advisors. They always have the most up-to-date information and news from Canadian insurance providers to help you make the right choice when applying for a policy.

Life has a lot of twists and turns—maybe you’ve hit a few bumps in the road. Thankfully, a few wrong turns in your past won’t bar you from life insurance completely. Insurance companies want to know a lot of information about your life, both now and in the past, including information about your criminal record. Some companies will want to know if you’ve been convicted in the last two, five, ten years, or ever before. 

Luckily there are life insurance options for you, whether your record was in the last few years or decades ago. Read on to find out your best life insurance options when you have a criminal record.

Can I get life insurance if I have a criminal record?

Yes. You can get life insurance if you have a criminal record. However, getting your application approved and by which company will depend on how long ago you were convicted. Some companies will ask about your criminal history in the last two, five, ten years, or ever before. If you are declined for traditional life insurance, there are other options for you as well (more on that below). 

What will they ask me on a life insurance application?

Life insurance companies collect information about your personal and health history to decide the financial risk to insure your life. They will ask about:

• Your family’s health history
  • History of diseases that caused premature death
  • Information regarding the frequency of cancers, strokes, diabetes, and other conditions

• Your health history
  • The name and dosages of any current medications
  • A list of diagnosed physical health conditions
  • A list of diagnosed mental health diagnoses such as anxiety, depression, or bipolar disorder
  • Name and address of your current doctor
  • Your weight and history of major weight gain/loss
  • Dates of any surgeries or procedures in the last 10 years
• Your lifestyle 
  • About your travel history in the last 2 years and any upcoming travel plans
  • Your driving history (if you’ve been charged with reckless driving, suspended license etc).
  • History of drug, smoking, or alcohol offences (and general drug/alcohol history)
  • If you’ve been found guilty of any crimes or if there are criminal charges pending
  • If you engage in skydiving, racing, parachuting, scuba diving, mountain climbing, backcountry skiing, or any other high-impact/high-risk activity
  • If you’ve flown as a pilot or student pilot

Some insurance companies will ask specifically how long ago you were found guilty and if you are still on parole because of the conviction.  

A question on your application might be posed like this: 

“In the last 10 years, have you been charged with or convicted of or pleaded guilty to any criminal offence or financial services regulatory offence (including securities regulators), or are any criminal charges pending?

If yes, follow-up questions might be:
1. Nature of offence
2. Date charged (month and year)
3. Sentence details (including imprisonment, fine, suspended sentence, conditional discharge, probation):
4. Date of sentence (month and year).”

Get the full scoop on the life insurance application process here.

Can I get life insurance if I’m in jail?

It may be possible to get life insurance if you are in jail, but it is highly unlikely. Most insurance companies will automatically decline you if you’re in jail, awaiting trial, or on probation. In a majority of cases, the insurance company will have wanted at least one year to pass since the conviction, and even then, they might decline you. 

In order to apply for life insurance while in jail, you will need to provide evidence that you have the financial means to pay for coverage and prove that your health is stable. Additionally, you must satisfy all of the requirements necessary for any other applicant seeking life insurance, including providing medical records, a detailed history of drug/alcohol use, and other personal information. Even then, many insurance companies would be hesitant to cover you on a traditional life insurance policy.

Can I get life insurance if I’m on probation?

It’s possible, but not likely to get life insurance if you are on probation. The approval process will depend on several factors including the length of your probation period and the type of crime and severity of that crime. For example, people with felony convictions may have a harder time getting insurance than those with a misdemeanor charge. Your application may be approved but with a higher premium or a shorter term due to the risk associated with your criminal record. In some cases, you may even need to have a third-party guarantor (such as an employer) vouch for your good behavior during your probation period in order for the insurance company to consider you for coverage.

How long do insurance companies consider criminal records?

Many insurance companies that PolicyAdvisor works with will accept your application if you have a criminal record, but it depends on how long ago. Some companies will ask about the last 12 months while some will want to know if you’ve ever been on the wrong side of the law. This doesn’t necessarily mean that they will still approve you, but here is a list of the periods that each company asks about for traditional policies.

This list is based on general application questions and does not mean that these insurance companies will accept your application if you were convicted before the period they asked about. Any mention of a criminal record at any time may mean the insurance company will ask for a criminal record check.  

Will life insurance companies do a criminal record check?

Life insurance companies usually don’t run these criminal background checks themselves. However, if you have a criminal record, they may require that you submit one with your application. This document will give them information about the time of your conviction and the severity (like the type of felony or misdemeanor) in order for them to assess the risk to insure you (this is called the “underwriting process”). For example, if you’ve had many convictions in the past, the life insurance provider sees that as a risk factor—you may live a high-risk lifestyle that may lead to premature death. It sounds judgemental, but the insurance company is looking to protect its bottom line—it is a business after all. 

What kind of life insurance can I get if I have a criminal record?

If you have a criminal record you are considered a “high-risk applicant” and you may have trouble getting traditional life insurance coverage, but you still have options. Here are the different types of life insurance you may be eligible for if you have any kind of criminal history. 

1. Traditional life insurance 

Depending on how long ago your charge was, you may still be eligible for traditional life term life insurance or whole life insurance. The outcome will depend on the underwriting process. With traditional life insurance, the application asks a detailed series of questions to flag any high-risk clients. If the life insurance company sees you as leading a high-risk lifestyle that puts you at risk of premature death, they will likely decline your application. As mentioned above, every company has a different standard of years of criminal history they are concerned about. However, there are other life insurance policies that have a less rigorous application process, known as “no-medical life insurance”.

2. Simplified issue life insurance 

With simplified issue life insurance, the application questions are, well, simple! They usually don’t require as much detail and can be a little easier to get approved. However, some simplified issue policies may still ask you about your criminal record, but the “years since a criminal conviction” may be longer than those questions on a traditional policy application. There may still be a qualifying question like the length of time or severity of the charge, but it depends on the policy. That being said, simplified issue life insurance can be expensive. Because the life insurance carrier isn’t taking as many precautions during the underwriting process, they simply increase the premium rates to cover any potential risk that comes with insuring you. 

If you have had a criminal conviction, here are your best simplified life insurance options: 

3. Guaranteed issue life insurance 

You know those, “don’t ask, don’t tell” kind of policies? Guaranteed issue is kind of like that. With guaranteed issue life insurance, you are asked only basic questions like your age and residency status and there are no medical exams. Some companies, like CPP, will still ask the question on their guaranteed acceptance applications, but they are concerned about recent convictions—if it’s in the past, it’s in the past.

You are most likely to be approved for guaranteed issue life insurance if you have a criminal record, but it will cost you. Again, because there is minimal underwriting, the insurance company charges higher for these kinds of policies to protect themselves from financial loss.  

Will my criminal record affect the cost of my life insurance?

Yes, having a criminal record will usually affect your life insurance rates. The cost of life insurance will fluctuate based on your health and lifestyle. With traditional life insurance, the company may put a rating, meaning a scaled price increase, depending on how long ago your charge was and the severity of it. If you’re declined by traditional life insurance, you can apply for simplified or guaranteed issue life insurance, but the base costs of these policies are higher than traditional ones. 

How to apply for life insurance if you’ve had a criminal conviction 

If you have a conviction on your record, it’s always best to speak to one of our licensed life insurance experts on the PolicyAdvisor team. When you book a call with one of our team members, we can take a look at your recorded criminal history without judgment and find the best possible solution for you and your family. We understand that everyone just wants to look out for their family’s future, and we’re here to help you do that, no matter what!

Can I get life insurance if my charges were dropped? 

If your charges were dropped, you should be able to get life insurance. The life insurance company may still want to know more information about the charge and the circumstances surrounding the case. However, you only have to declare if you were actually convicted on an application.

Do vehicle-related convictions count with life insurance? 

When a life insurance application asks you about convictions, they mean all convictions including vehicle-related ones. So, you would need to provide more information about any DUIs or other convictions involving a vehicle on your driving record. You may be required to submit a motor vehicle report that has more details about your traffic convictions. This report will also list your moving traffic violations (running a stop sign, not signaling, etc.) as well as non-moving violations (seat belt tickets, registration tickets, etc.). The life insurance company may then use this information to assess the risk to insure you. In their eyes, someone who has a ton of tickets, as well as criminal convictions, may be seen as someone who is “high risk” for them to insure.  

Can I lie about my criminal record on my life insurance?

We would never recommend that you lie on a life insurance application. Call us sticklers, but if the insurance company finds out you’ve had any criminal convictions and you said you haven’t had any, they may decline your application or decline your family the life insurance death benefit money after you die. After paying for life insurance premiums, you wouldn’t want your family to come out at the end of it with nothing! Additionally, most policies have a two-year contestability period. The contestability period of an insurance policy lasts two years from the date the policyholder was approved for coverage. This means an insurance company has two years after it issues the policy to void the coverage or adjust the premiums if it discovers an error in a material fact in the application.

Life insurance companies use a variety of factors to determine what premiums they will charge for a policy. One of those factors is past drug use. Whether it’s the case that you smoked a joint years ago or if you’re an active user of other drugs, the insurance companies want to know. But will it affect your eligibility and price for life insurance? The answer depends on what you’ve done, when, and how often.

Yes, if you have done drugs in the past, it will affect your life insurance. Even if you’ve only done them once, the insurance company wants to know about it. When applying for life insurance, applicants are typically asked to disclose the consumption of any drugs. This includes:

• Marijuana
• Cocaine
• Methamphetamine
• Heroine
• Steroids
• Mushrooms
• LSD
• Prescription drugs
  

If you’ve done these drugs that doesn’t necessarily mean you’ll be denied life insurance or that your price will be crazy high. You may still be eligible for a standard rate. It depends on the following:

• What drugs you have done
• How long ago
• If you are still doing them
• If you are seeking treatment because of your drug use

Insurance companies ask about drug use because those who do drugs, even recreational drugs, may be at a higher risk of health issues or premature death compared to those who don’t use. If you’re an active user, insurance companies consider you a “risky person” that may cost them your life insurance payout sooner rather than later. So, they either deny the application or adjust the price according to how risky they think the behaviour is. This pricing adjustment is called a “rating.”

Each company will have a certain number of years that they will ask you about. If you’ve done drugs at all in the last 12 months, you will be declined for most traditional life insurance policies. However, if it’s been longer, you may still be able to get coverage.

Life insurance and prescription drugs

When applying for life insurance, insurers will typically ask about an individual’s prescription drug use, including the type of medication, the dosage, and the reason for taking the medication. Taking prescription drugs is fine. What life insurance companies are most concerned about is whether there is an abuse issue with that drug. For example, the use of commonly prescribed opioids such as oxycontin, fentanyl, or morphine can be highly addictive and may cause addiction issues or overdose if they are used incorrectly. 

Life Insurance and marijuana

While smoking cannabis is legal, using it (including edibles) more than 3 times in one week will mean a higher price for your life insurance. Consuming marijuana this month qualifies you for smoker’s rates. If you are a daily marijuana smoker you’ll have a tough time getting approved for traditionally underwritten life insurance. In such cases, non-medical life insurance providers can be a coverage option, albeit at an even higher premium than fully underwritten policies (more on that below).

Life insurance and hard drugs

Hard drug use, such as heroin, cocaine, or methamphetamine, can have a significant impact on an individual’s ability to obtain life insurance or affect the cost of their premiums. Hard drug use can have a range of negative health consequences, including an increased risk of premature death, heart disease, and other serious health conditions. In some cases, an insurer may require a medical examination or additional information about an individual’s drug use history before issuing a policy.

Can I get life insurance if I’ve been to rehab?

Yes, it is possible to get life insurance if you have been to rehab. While it may be more difficult to obtain coverage, most insurers will take into account an individual’s history of drug use when assessing their risk level. Factors such as the age at which the individual began using drugs, how long they have been using drugs for, and whether they are still actively using drugs are all taken into consideration by insurers.

Additionally, many insurers require a medical exam or additional information about an individual’s drug use before issuing a policy. Depending on the type of drug used and the amount of time since last usage, the insurer may issue a policy with higher-than-average premiums or deny the application altogether.

If you are in rebab at the time of application, it may be more difficult to obtain life insurance coverage. Life insurers typically want to see that an individual has successfully completed a treatment program and has maintained sobriety for a period of time before issuing a policy. They may ask you to hold off on applying until you complete treatment, or you may look into other life insurance options with guaranteed acceptance or no-medical exams.

Life insurance for drug users

Depending on your health and drug use history, you may be eligible for standard term or permanent life insurance. However, if your relationship with drugs is a bit more complicated than “a couple joints back in your college days”, you might consider some other types of life insurance policies that skip the extensive medical questionnaires, exams, or drug tests.

No-Medical life insurance

With no-medical life insurance, you either only have to answer a few medical questions or no questions at all, depending on the type of policy— the no-medical policy is either a simplified issue or a guaranteed issue policy. Pricing is higher than medically underwritten policies: the insurance provider takes on more risk by offering you a policy without the underwriting review or asking more stringent questions about your health.

Simplified issue life insurance

Simplified issue life insurance requires that you answer a FEW questions about your medical history for the life insurance application, rather than undergoing a full physical medical exam and interview process. There may still be some forms of medical testing involved, depending on the company. However, the qualifications for the number of years since your last instance of drug use is more relaxed with simplified no-medical policies than traditional policies.

Guaranteed life insurance

Guaranteed issue life insurance requires NO medical questions or medical underwriting. You qualify for coverage, regardless of your health. This may be the best option if you have an extensive history of drug use, if you experience health problems because of drugs, or you simply want to avoid urine or blood tests, medical questions, or medical exams. Keep in mind though, this is the most expensive type of term life insurance coverage and often has lower coverage amounts.

Can I get life insurance as an active drug user?

It’s possible if you are a current drug user, but it might be difficult. If you’ve used at all in the last 12 months (other than marijuana), insurers will decline you for traditional policies. You may still qualify for simplified life insurance but with less coverage. For example, you may only qualify for $50,000, where as with traditional life insurance you could qualify for up to $5 million. 

Can I get life insurance if I’ve been to rehab?

Yes, it is possible to get life insurance if you have been to rehab. However. It may be more difficult to obtain coverage. Most insurers will take into account an individual’s history of drug use when assessing their risk level. Factors such as the age at which the individual began using drugs, how long they have been using drugs for, and whether they are still actively using drugs are all taken into consideration by insurers.

If you are in rebab at the time of application, you may be declined—remember, any use in the last 12 months is usually a decline for traditional life insurance. Life insurers typically want to see that an individual has successfully completed a treatment program and has maintained sobriety for a period of time before issuing a policy. They may ask you to hold off on applying until you complete treatment, or you may look into other life insurance options with guaranteed acceptance or no-medical exams.

Should I disclose drug use on a life insurance application?

Yes, you should disclose drug use, even if it was just one time. If the insurance company cross-examines your file and finds out that you lied on your application, you might be denied coverage at the time of application OR even when your family goes to file a claim. The insurance company has two years after it issues the policy to void the coverage or adjust the premiums if it discovers an error or lies in the application—this is known as the contestability period.

Does life insurance cover overdose death?

In most cases, life insurance policies cover overdose deaths. If a policyholder dies as a result of an accidental overdose and the policy is in good standing, the beneficiaries should receive the death benefit from the policy. 

However, if the policyholder died as a result of an intentional overdose within the first two years of the policy (meaning the death was by suicide), it will not be covered. In most cases, Canadian life insurers will not pay out for suicidal deaths within the first two years of starting their policy—after that, suicide is covered.

Life insurance and alcohol use

Like drug use, excessive alcohol consumption can increase the risk of premature death, which insurers take into consideration when assessing an individual’s risk level. When applying for life insurance, insurers will typically ask about an individual’s alcohol consumption habits, including the frequency and quantity of alcohol consumed. If an individual has a history of excessive alcohol use or has sought treatment for alcoholism, it may result in higher premiums or difficulty obtaining life insurance.

The number of drinks that is considered “too many” for life insurance purposes will depend on several factors, such as the individual’s age, weight, and overall health. The Canadian Centre for Substance Use and Addiction notes the following health guidelines: 

• 0 drinks per week — Not drinking has benefits, such as better health, and better sleep.
• 2 standard drinks or less per week — You are likely to avoid alcohol-related consequences for yourself or others at this level.
• 3–6 standard drinks per week — Your risk of developing several types of cancer, including breast and colon cancer, increases at this level.
• 7 standard drinks or more per week — Your risk of heart disease or stroke increases significantly at this level.
• Each additional standard drink radically increases the risk of alcohol-related consequences.

However, insurers may have their own guidelines for what they consider excessive alcohol consumption, and these guidelines may vary from one insurer to another.

Life insurance and smoking

The stress that smoking inflicts on one’s body has lasting detrimental health effects (source: CDC). Tobacco consumers are much likelier to have a health condition later in life like cancer, heart disease, and stroke. While there are many more repercussions to smoking, it is these deadly medical conditions that make a smoker’s life riskier to insure. Depending on the age of the applicant and the amount of coverage applied for, the cost of life insurance for smokers can be higher by 50 to 100% compared to those for non-smokers.

You are considered a smoker if you have used or consumed any of the following products in the last 12 months:

• Cigarettes
• E-cigarettes
• Cigars
• Cigarillos
• Chewing Tobacco
• Recreational marijuana (more than 3 times a week)
• Nicotine products
• Vapes

Applying for life insurance as a drug user

During the application for life insurance, you will be asked about any past use of illicit drugs, legal drugs, or alcohol use including:

• Marijuana
• Cocaine
• Methamphetamine
• Heroine
• Steroids
• Mushrooms
• LSD
• Prescription drugs

The insurance company will want to know when you used these substances, how often, if you are still using them, if you’re going to treatment for them, and if you have long-term health effects from your drug history.

You must be honest about your past drug use when you apply for life insurance—if the insurance company finds out you lied, your coverage for your family may be denied altogether. Those with a history of drug abuse may be declined by some companies, but others are more lenient.

Life insurance providers may require you to submit medical records, medical tests, or drug tests depending on your history. Life insurance providers will also use the following information to determine your life insurance rates:

• Health and lifestyle history
• Family history
• Type of insurance (term life insurance, whole life insurance, no-medical life insurance, etc.)
• Coverage amount
• Health Concerns

Our licensed insurance experts at PolicyAdvisor can help you find the best life insurance policy if you have a history of drug use, whether that means just experimenting 10 years ago or you’re in recovery. Schedule a call with one of our advisors today!

Frequently Asked Questions 

Do I need to take a drug test to get life insurance?

Do I need to take a drug test to get life insurance?

In a sense, yes. With traditional life insurance, you will be required to undergo a medical test that includes a blood and urine sample. These tests pick up things like kidney function, blood sugar levels, cholesterol levels, and liver function, but they will also pick up any tobacco, drugs, or alcohol in your system. So insurers don’t test for drugs exclusively, but any drug in your body will get picked up on the blood or urine test.

Can I buy life insurance as a recovering addict?

Yes, it’s possible to buy life insurance as a recovering addict. However, the process of obtaining life insurance may be more complex and require additional information about your recovery journey. You may be required to provide information about the length of your sobriety, the type of treatment you received, and any ongoing therapy or support groups that you participate in. You may be declined traditional life insurance if you’ve used in the last 12 months, but you may be simplified issue life insurance, or worst-case scenario guaranteed life insurance.

Can you get life insurance if you take steroids?

Yes, but taking steroids can potentially affect your price for life insurance. Anabolic steroids, which are synthetic versions of the male hormone testosterone, are often used to enhance muscle growth and athletic performance. However, steroid use is also associated with various health risks, including liver damage, cardiovascular disease, and other serious conditions. Because there are some health risks involved, insurance companies may increase your premiums in relation to those health risks.

Can I get life insurance with mental health issues?

Yes, you can get life insurance if you have mental health issues. Just like drug use and life insurance, your eligibility depends on your diagnosis, severity, and treatment of mental health conditions such as bipolar disorder, depression, or anxiety.

Applying for life insurance as a drug user

During the application for life insurance, you will be asked about any past use of illicit drugs, legal drugs, or alcohol use including:

• Marijuana
• Cocaine
• Methamphetamine
• Heroine
• Steroids
• Mushrooms
• LSD
• Prescription drugs

The insurance company will want to know when you used these substances, how often, if you are still using them, if you’re going to treatment for them, and if you have long-term health effects from your drug history.

You must be honest about your past drug use when you apply for life insurance—if the insurance company finds out you lied, your coverage for your family may be denied altogether. Those with a history of drug abuse may be declined by some companies, but others are more lenient.

Life insurance providers may require you to submit medical records, medical tests, or drug tests depending on your history. Life insurance providers will also use the following information to determine your life insurance rates:

• Health and lifestyle history
• Family history
• Type of insurance (term life insurance, whole life insurance, no-medical life insurance, etc.)
• Coverage amount
• Health Concerns

Our licensed insurance experts at PolicyAdvisor can help you find the best life insurance policy if you have a history of drug use, whether that means just experimenting 10 years ago or you’re in recovery. Schedule a call with one of our advisors today!