Does Life Insurance Cover Pre-Existing Conditions in Canada?

A Common Concern for Many Canadians

If you have a pre-existing health condition, you might assume life insurance isn't available to you — or that it will be unaffordably expensive. The reality is more nuanced, and more encouraging than most people expect.

What Is a Pre-Existing Condition?

In the context of life insurance, a pre-existing condition is any health condition you had before applying for coverage. This can include diabetes, high blood pressure, heart disease, mental health conditions, cancer history, and many others.

How Insurers Assess Pre-Existing Conditions

When you apply for life insurance in Canada, you'll go through a process called underwriting. The insurer reviews your health history, may request medical records, and sometimes requires a medical exam.

Based on this assessment, the insurer will do one of four things:

• Approve you at standard rates: Your condition is well-managed and poses minimal added risk

• Approve you at rated premiums: You're approved but pay a higher premium to reflect the added risk

• Exclude the condition: You're approved, but claims related to that specific condition aren't covered

• Decline coverage: In rare cases where the risk is too high for traditional underwriting

Different Insurers, Different Decisions

This is where working with an independent broker makes a significant difference. Each of the 15+ insurers PureTerm works with has its own underwriting guidelines. One insurer might rate you significantly higher for a condition that another considers standard.

An independent broker knows which insurers are most favorable for specific conditions — and can direct your application accordingly, saving you money and improving your chances of approval.

No-Medical and Simplified Life Insurance

If you have a serious condition and are declined for traditional coverage, no-medical life insurance is another option. These policies don't require a medical exam or detailed health questions, but they typically come with lower coverage limits and higher premiums.

Don't Assume — Apply

Many Canadians with pre-existing conditions assume they can't get covered and never apply. This is a mistake. PureTerm's licensed brokers help Canadians with health conditions navigate the underwriting process and find the best available coverage.