Will MAID Affect Your Life Insurance?
No one likes to think about end-of-life decisions. It’s understandable that Canadians facing serious illness would worry about how Medical Assistance in Dying might affect their life insurance coverage. These concerns are natural when you’re already dealing with incredibly difficult situations.
The good news is that MAID does not affect your life insurance the way suicide does. Insurance companies across Canada will honour claims when MAID follows legal requirements. This is different from suicide, which may trigger contestability periods in your policy. When all proper legal processes are followed, insurers treat medically assisted death differently.
Insurance providers have been clear about their position on this matter. Whether you live in Vancouver or Halifax, your life insurance policy remains valid when MAID meets the legal requirements for Canadian law. Your beneficiaries can receive the full death benefit. This distinction gives you peace of mind during an already challenging time.
Understanding how this works with different types of coverage matters if you’re considering this path. We’ll look at how MAID affects your life insurance policy and what you should know when making these difficult decisions.
Understanding MAID and Who Qualifies
What is Medical Assistance in Dying (MAID)?
Medical Assistance in Dying is a legal procedure where a doctor or nurse practitioner provides medication that brings about a patient’s death at their request.
Canada made MAID legal after the Supreme Court ruled in February 2015 that certain Criminal Code provisions violated the Charter of Rights and Freedoms. Parliament passed the legislation in June 2016 to establish how MAID works.
Eligibility criteria under Canadian law
You must meet specific requirements to qualify for MAID. You need to be at least 18 years old and mentally capable of making healthcare decisions. You also must be eligible for health services funded by a Canadian government.
Most importantly, you need to have what’s called a “grievous and irremediable medical condition.” This means you have:
A serious and incurable illness, disease, or disability
An advanced state of irreversible decline in capability
Enduring physical or psychological suffering that cannot be relieved under conditions you consider acceptable
Your request must be voluntary, made without external pressure, and include informed consent after being told about available ways to relieve your suffering.
Differences between MAID and suicide
The distinction between MAID and suicide matters for your life insurance.
MAID follows a formal process with two medical assessments, informed consent, and a waiting period. Suicide can be impulsive and happens without medical oversight.
Here’s what’s important for your insurance: MAID deaths are attributed to the underlying medical condition on death certificates, not the act itself. This distinction affects how life insurance companies handle claims across Canada.
How MAID Affects Life Insurance in Canada
If you’re considering MAID, you might wonder whether this decision will affect your life insurance policy. Will your beneficiaries still receive the death benefit? These are important questions when you’re making difficult decisions about your care.
Does MAID affect life insurance policies?
Medical Assistance in Dying does not negatively impact your life insurance policy in Canada. According to Ontario law, a decision to receive MAID will not affect life insurance or pensions. Life insurance providers across Canada have established that they will honour policies when MAID follows the legislated process. This applies whether your policy is new or you’ve had it for years.
Why MAID is not treated as suicide by insurers
Most life insurance policies include a suicide provision. This means if someone dies by suicide within the first two years of coverage, the insurer may not pay the full death benefit. But MAID is classified differently.
Frank Zinatelli of the Canadian Life and Health Insurance Association confirmed that providers would pay out on policies even if they are less than two years old when someone chooses MAID. Insurance companies recognise MAID as a valid medical procedure rather than suicide.
What the CLHIA guidelines say
The Canadian Life and Health Insurance Association represents 99% of Canada’s life and health insurers. They have issued clear guidelines: “If MAID takes place and it is in accordance with the rules and processes set out by the government(s), then MAID will not be considered to be ‘suicide’ for the purposes of life insurance”. These guidelines create consistency across the insurance industry.
How long you’ve had your policy matters
While MAID itself doesn’t trigger the suicide clause, when you purchased your policy can still be relevant. Insurers might investigate if they suspect you bought insurance knowing you planned to have MAID without disclosing your condition. However, if you established your policy before your diagnosis, you should receive full payment under normal circumstances.
Common reasons claims may be denied
Even though insurers accommodate MAID, they may still deny claims for other valid reasons. These include:
Misrepresentation when applying for coverage
Specifically excluded medical conditions
Missed premium payments
Expired term life insurance
It’s important to review your policy details thoroughly to understand your coverage.
Legal Protections for Your Insurance Coverage
Canada has legal safeguards to protect those who choose Medical Assistance in Dying. These protections vary across provinces, but they all work to ensure your insurance remains valid.
Ontario leads with specific MAID protections
Ontario has the strongest legislation protecting those who choose MAID. The province enacted laws ensuring that insurance benefits cannot be denied based solely on choosing this end-of-life option. This protection applies no matter when you bought your policy, giving Ontario residents significant security. Your beneficiaries will receive full death benefits without any challenges based on MAID itself.
Other provinces follow similar principles
The rest of Canada handles MAID-related insurance claims consistently, though each province has slight differences. Quebec and British Columbia treat MAID as a legitimate medical procedure, not suicide. Even workplace safety boards in provinces like Manitoba and Saskatchewan consider deaths from legally provided MAID as consequences of the underlying medical condition.
How insurance regulation works in Canada
Insurance regulation operates on two levels in Canada. The federal government oversees whether insurance companies are financially sound. Provinces and territories handle licensing and marketing rules. This system ensures proper oversight while letting provinces adapt to local needs.
The Canadian Life and Health Insurance Association (CLHIA) provides industry-wide standards that member companies follow for MAID claims. This creates consistency across all provinces, so you can expect similar treatment whether you live in Halifax or Vancouver.
What does this mean for you? Your insurance coverage has multiple layers of protection, from industry guidelines to provincial laws to federal oversight.
What to Do if You’re Considering MAID
Proper planning helps ensure your affairs are in order. When you’re facing serious illness, the last thing you want is confusion about insurance coverage for your family.
Check your current life insurance policy
Look at your policy details carefully. Most insurers have a two-year contestability period where they examine claims more closely. After this period, claims usually go through with fewer questions. Call your insurer to confirm your coverage amounts and policy status.
Talk to an insurance broker
Getting professional advice matters when you’re dealing with MAID and insurance. A broker who understands Canadian insurance regulations can clarify how your specific policy works. This becomes especially important if you bought your policy outside Canada, where different rules might apply.
Keep your documentation complete
You’ll need comprehensive records of all medical assessments and MAID eligibility decisions. The death certificate should include both the cause of death and your underlying medical condition. Complete documentation makes the claims process smoother for your beneficiaries.
Be honest if you’re applying for new coverage
Insurance companies can cancel policies for misrepresentation, even unintentional mistakes. If you’re applying for new coverage while considering MAID:
Give accurate health information
Disclose all medical conditions
Answer every question honestly
Look into no-medical-exam insurance
If you have serious health conditions, simplified issue or guaranteed issue life insurance might work better for you. These policies don’t require medical exams, making them accessible when traditional coverage isn’t an option.
Keep your executor informed
Have an open conversation with your executor about MAID. Make sure they understand the process and know where to find all necessary documentation. This preparation helps your beneficiaries submit complete claims without delays during an already difficult time.
Why Maple Bay?
Making decisions about MAID while managing your insurance concerns doesn’t have to be overwhelming. Your life insurance policy will remain valid when you follow the proper legal process. Insurance companies across Canada have made this clear.
If you’re considering MAID, take time to review your current policy and speak with someone who understands Canadian insurance regulations. Keep your medical documentation complete and maintain open communication with your executor. These simple steps will help your beneficiaries when the time comes.
You might also want to consider non-medical life insurance options if you’re dealing with serious health conditions. Simplified or guaranteed issue policies can provide coverage without medical exams, giving you options when traditional insurance might be difficult to obtain.
The insurance industry has recognised MAID as a legitimate medical procedure, not suicide. This means you can focus on your medical care without worrying about leaving your family financially unprotected. Your carefully considered choices will be respected.
At Maple Bay, we understand that planning for end-of-life decisions involves complex insurance considerations. We are insurance brokers, which means we work for you to find the right coverage for your situation. Our team can help you understand how MAID affects different types of policies and guide you through your options.
When you’re ready to review your life insurance or explore new coverage options, contact us today. We’ll help you find the peace of mind that comes with proper protection for your loved ones.