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

This concept artwork from July 2020 shows the inland port planned for the former Skeena Cellulose mill site in Terrace. (Image courtesy Hatha Callis, Progressive Ventures Group)
Terrace city council approves inland port OCP amendments

Project still requires zoning bylaw, development permit to continue

This copper frog pendant was made by Jamika Aksidan, a young Nisga’a artist who was recently recognized with an award for her work. (Photo courtesy Nisga’a Museum)
Nisga’a youth artist wins award

Award includes $500, exhibition in Nisga’a Museum

A BC Hydro outage is affecting nearly 4000 customers in Kitimat. The cause of the outage is under investigation. (Screenshot/BC Hydro Outage Map)
Cable fault responsible for Kitimat power outage, BC Hydro says

At its peak, the BC Hydro power outage affected near 4,000 customers

Graph showing the 2020 passenger totals at the Northwest Regional Airport in Terrace. (Submitted/Northwest Regional Airport)
New year brings an end to a turbulent 2020 at Northwest Regional Airport

Passenger totals half of what they were in 2019

Keith the curious kitten is seen on Nov. 4, 2020 at the Chilliwack SPCA. Friday, Jan. 22, 2021 is Answer Your Cat’s Questions Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of Jan. 17 to 23

Answer Your Cat’s Questions Day, Pie Day and International Sweatpants Day are all coming up this week

JaHyung Lee, “Canada’s oldest senior” at 110 years old, received his first dose of the COVID-19 vaccine on Thursday, Jan. 14, 2021. He lives at Amenida Seniors Community in Newton. (Submitted photo: Amenida Seniors Community)
A unique-looking deer has been visiting a Nanoose Bay property with its mother. (Frieda Van der Ree photo)
A deer with 3 ears? Unique animal routinely visits B.C. property

Experts say interesting look may be result of an injury rather than an odd birth defect

Sooke’s Jim Bottomley is among a handful of futurists based in Canada. “I want to help people understand the future of humanity.” (Aaron Guillen - Sooke News Mirror)
No crystal ball: B.C. man reveals how he makes his living predicting the future

63-year-old has worked analytical magic for politicians, car brands, and cosmetic companies

Terry David Mulligan. (Submitted photo)
Podcast: Interview with longtime actor/broadcaster and B.C. resident Terry David Mulligan

Podcast: Talk includes TDM’s RCMP career, radio, TV, wine, Janis Joplin and much more

Seasonal influenza vaccine is administered starting each fall in B.C. and around the world. (Langley Advance Times)
After 30,000 tests, influenza virually nowhere to be found in B.C.

COVID-19 precautions have eliminated seasonal infection

Prime Minister Justin Trudeau listens to a question during a news conference outside Rideau cottage in Ottawa, Friday, January 8, 2021. THE CANADIAN PRESS/Adrian Wyld
Trudeau says Canada’s COVID vaccine plan on track despite Pfizer cutting back deliveries

Canadian officials say country will still likely receive four million doses by the end of March

Jobs Minister Ravi Kahlon shared a handwritten note his son received on Jan. 13, 2021. (Ravi Kahlon/Twitter)
Proud dad moment: B.C. minister’s son, 10, receives handwritten note for act of kindness

North Delta MLA took to Twitter to share a letter his son received from a new kid at school

Lilly and Poppy, two cats owned by Kalmar Cat Hotel ownder Donna Goodenough, both have cerebellAr hypoplasia, a genetic neurological condition that affects their ability to control their muscles and bones. Photo by Alistair Taylor – Campbell River Mirror
VIDEO: Wobbly Cats a riot of flailing legs and paws but bundles of love and joy to their owner

Woman urges others to not fear adopting cats with disabilities

Most Read