Drug use in Canada is either prevalent or nonexistent depending on what you define as a “drug.” Eleven percent of the Canadian population “has a problem with drugs or alcohol,” according to a CBC survey, but this does not include people who use drugs recreationally without “a problem.” That number, especially when you include alcohol and cannabis, is much, much higher, and if you include just people with classically defined addictions to illicit drugs, like crack, cocaine, and heroin, the number is much, much higher. lower.

In general, the way insurance companies approach drug problems is based on two main questions: Is the potential client using prescription drugs provided through the appropriate channels, or is he using drugs outside those channels and, why? Therefore, it is statistically vulnerable to certain liabilities?

For the former, these questions are often discovered in the background checks and medical questionnaires provided by insurance companies before a policy is developed or offered. Naturally, some medications have effects on a person’s life expectancy and prospective quality of life, and others carry certain health risks, even when administered by a healthcare professional. In these cases, an insurance company will consider the medical problems treated by the drugs and the effects of the drugs themselves when developing a policy, but most major health insurance providers can usually provide a policy.

For those who use illicit drugs, the options are generally more difficult. Insurance companies are often hesitant to provide policies, many even wary of offering low-cost options for people who smoke cigarettes.

Fortunately, there are still some options available to drug users, especially those who use illicit drugs. Remember, many policies will not cover complications that occur due to illicit drug use, and failure to disclose such information when requested may constitute insurance fraud, which can be a serious offense that includes large fines and possible jail time.

In general, illicit drug users only have one option when it comes to life insurance opportunities: simplified life insurance policies that do not require medical questionnaires. This is changing as more and more insurance providers offer products designed specifically for the “hard to insure” market. Simplified insurance plans often require only simple medical questions that do not include questions about drug use.

Non-medical life insurance policies vary widely from provider to provider, so it’s beneficial to research these plans before contacting them to compare rates and potential coverage. You can also ask your broker to do an informal preliminary consultation before submitting a formal application. Informal preliminary consultations are non-binding and can give you an idea of ​​whether your application would be approved as standard, rejected or qualified. Keep in mind that insurance providers may offer plans with coverage from day one or with a two-year waiting period, depending on your situation.

If you have used or are using illegal drugs and need life insurance, it’s important to discuss your options with an insurance broker who has your best interests in mind. With the right team behind you, the right policy can be found.