Can You Get Life Insurance With a Pre-existing Condition?

Can you get life insurance with a pre-existing condition in Canada?

You may be able to get life insurance with pre-existing conditions, but eligibility and rates will depend on many factors: 

• What is the health condition?
• When were you diagnosed?
• How severe is it?
• What treatment are you receiving?

The insurance provider will assess your medical history before setting a rate and issuing a policy—and this may mean collecting additional health information or requesting a medical exam that includes blood and urine tests.

“You don’t need to be in perfect health to get life insurance.” —Laura McKay, Life Insurance Expert and Co-Founder at PolicyMe

Premiums will typically be lower if your condition is mild, manageable, or if you’ve recovered fully from a prior incident. Premiums are typically higher if you’re a high-risk applicant with a severe condition.

Rates vary from one provider to the next, so shop around and compare life insurance premiums—especially if you have a pre-existing condition. The sooner you apply, the less you’ll pay.

Common pre-existing conditions in Canada

Pre-existing conditions are formally diagnosed by a medical professional. For example, experiencing a panic attack is not a pre-existing condition, but generalized anxiety disorder is considered a diagnosis. Conditions are typically categorized into mild, serious, or family history conditions. 

Here are some common mental health and other physical health issues that are considered pre-existing conditions by most Canadian insurers:

* These are generalizations and each case is unique. Eligibility and rates will vary.

Any pre-existing condition could trigger your application to be sent to a manual underwriter for more information before approval. A real human will assess your application and possibly request additional medical tests depending on your health history.

Pregnancy is not considered a pre-existing condition, but most companies will not insure you while pregnant. If you apply for coverage while pregnant, the insurer will typically postpone your application until after your baby is born.
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Overall health matters, too

About 80% of Canadians have a risk factor for chronic disease that they can control to improve their health—think eating better, drinking less, and exercising more.

How pre-existing conditions impact life insurance rates

People with pre-existing health conditions may pay different premiums for life insurance, but it’s not always straightforward—rates depend on many factors. Here are some of the things a life insurance company might consider when reviewing an application for someone with a pre-existing condition:
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• Type of condition: Certain chronic or progressive conditions can make coverage more complex, while others have minimal impact. 
• Severity and symptoms: Conditions that are well-controlled and regularly monitored can help demonstrate stability and lower risk.
• Management: Ongoing treatment and proactive care can show insurers that your condition is being responsibly managed.
• Time since diagnosis: A recent diagnosis may lead to closer review, whereas a long-standing, well-managed condition often helps support eligibility.
• Related health concerns: Some conditions can influence other aspects of your health, which insurers may take into account when determining coverage and rates.

Never lie about your health

It is your responsibility to be honest in your life insurance application. Always disclose pre-existing conditions when applying for life insurance. Leaving out key information can result in your policy being cancelled later, and your beneficiaries might not receive a payout when they need it most.

Types of life insurance for pre-existing conditions

Life insurance options for people with pre-existing conditions include term life insurance, whole life insurance, and no-medical life insurance. Your employer may also offer group life insurance, though group coverage typically doesn’t offer enough to fully protect your loved ones if you pass away.

Term life insurance policies are usually the best choice for most Canadians, with or without pre-existing conditions.

It’s a good idea to apply for fully underwritten life insurance as your first option. While you’ll need to answer a medical questionnaire, and may even need to complete a medical exam, fully underwritten policies offer the most affordable premiums and higher coverage amounts.

Many people with pre-existing conditions in Canada qualify at standard rates—and even when a rating applies, premiums are often more affordable than simplified or guaranteed issue options. Plus, about 60% of PolicyMe customers get coverage with no medical exam, making the process easier than most people expect.

If you’re denied for fully underwritten coverage, guaranteed life insurance may be an option. There are fewer or no medical questions and approval is guaranteed; however, your premiums will typically be 10–20x higher than term coverage and you’ll be limited to low coverage amounts, often around $50,000. There may also be a waiting period before your coverage kicks in.
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Critical illness insurance is stricter than life insurance. You may still be able to buy a CI policy with a pre-existing condition, but exclusions are common and you may be declined for situations that directly relate to your pre-existing conditions.

How much does life insurance with pre-existing conditions cost?

People with pre-existing conditions may get standard rates, but those who are rated can expect to pay up to 3x more for life insurance coverage, but costs vary widely.

The exact cost of your policy is related to your specific condition and the risk rating you were assigned by the insurer as part of your application. Ratings depend on the company’s unique risk assessment model, but those with mild conditions may receive lower ratings, and those with more serious conditions higher ones.

Here’s how risk ratings correlate to an increased cost of life insurance using $100 as the standard amount.

You might be rated if you have any health risk factors whatsoever, whether you have pre-existing conditions, high BMI, smoker status, or even a risky hobby or profession.
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Re-assess after one year

Some insurers will let you get re-assessed after a year or two. If you are significantly healthier because you’ve been managing your condition effectively, your rates could go down.

What to expect after you apply for life insurance

To apply for life insurance, you should expect to answer questions about your health and possibly undergo a medical exam. You can gather some of this information ahead of time.

Start by applying for fully underwritten policies. These offer the most affordable rates, so it’s a good idea to see if you can be approved before applying for a simplified or guaranteed issue policy.

• You will need to answer some medical questions and disclose any pre-existing health conditions in the application.
• You may receive a “rated” policy with higher premiums if your conditions are mild or managed, or you may be sent to manual underwriting so that the insurer can collect additional information to better assess your health.
• If your application is sent to a manual underwriter, you may be asked to submit medical tests  (like blood or urine) before approval. This may include a nurse visit.

You can prepare ahead of time by gathering medical information about your diagnosis and treatments, such as:

• Doctors who diagnosed you
• Names and types for each condition
• Date of diagnosis
• Tests you’ve undergone, with dates
• Treatment plans (surgeries, medication, procedures, etc.)
• Date of last follow up and next follow up or test
• Attending physician statements (APS)

Timeline: It may take days, weeks, or even months to process a life insurance application for someone with pre-existing conditions. Mild conditions might be approved within a day or two. Ongoing conditions might require a nurse’s visit, which can take time to schedule—typically between two weeks and three months.
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Always be truthful on your application

Most Canadian and U.S. insurance companies have access to the Medical Information Bureau (MIB), a database that stores coded information that flags specific health conditions or lifestyle factors you’ve disclosed in the past (for example, high blood pressure, diabetes, smoking status, or a declined application).

What to do if you get denied for life insurance

If you get denied for a standard life insurance policy, you have a few options:

• Apply somewhere else: Each company has its own risk assessment process. Denial by one company doesn’t mean you’ll be denied elsewhere. 
• Apply for simplified or guaranteed issue: These policies have few or no medical questions, but rates are higher.
• Manage your health and re-apply: If your health improves or your condition changes, re-apply in the future.

Outright denials are not that common; in many instances, you’ll get rated and pay a higher rate for coverage.

FAQ: Life insurance pre-existing conditions