Friday, June 2, 2023

Can Drug Users Get Life Insurance?

Depending on what you define as a “drug”, drug use is non-existent in Canada. Eleven per cent of the Canadian population “have a drug or alcohol problem” 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 very high, and if you only include people with classically defined addictions to illicit drugs, such as crack cocaine and heroin, the number is much smaller. Is.

In general, the way insurance companies approach drug issues is based on two key questions: Are potential customers using drugs provided through the proper channels, or are they using those channels? are using drugs outside the U.S., and are therefore statistically vulnerable to certain liabilities.

For the former, these questions are often discovered by insurance companies in background checks and medical questionnaires before developing or offering a policy. Naturally, some drugs have an impact on a person’s life expectancy and future quality of life, and others come with certain health risks, even when provided by a health care practitioner. In these instances, an insurance company will take into account the medical issues being treated by the drugs and the effects of the drugs themselves in developing a policy, but usually a policy can be provided by most major health insurance providers.

For people who use illegal drugs, the choices are generally more difficult. Typically, insurance companies are hesitant to provide policies, with many also wary of providing low-cost alternatives to cigarette smokers.

Fortunately, there are still some options available to drug users, especially those who use illegal drugs. Remember, many policies do not cover complications that result from illegal drug use, and not disclosing such information when asked can constitute insurance fraud, which can be a serious crime that can result in heavy damages. Includes fines and possible jail time.

In general, illicit drug users have only 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 specifically designed for the “hard-to-insure” market. Simplified insurance plans often only require simple medical questions that do not include questions about drug use.

no medical life insurance policy Plans vary widely from carrier to carrier, so it’s worthwhile to research these plans before contacting them to compare potential rates and coverage. You can also ask your insurance broker to make an informal initial inquiry before submitting a formal application. The informal initial inquiries are non-binding and can give you an idea of ​​whether your application will be accepted, rejected or rated as standard. Keep in mind that insurance providers may offer plans for coverage with waiting periods as early as day one or as long as two years, depending on your situation.

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

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