MAID and Life Insurance in Canada: What We Know (And What We Don’t)

This is a sensitive topic — and an important one.

Recently, I was asked a thoughtful question about how changes in life expectancy and the growing use of Medical Assistance in Dying (MAID) might affect life insurance premiums and payouts.

It’s a professional question — but also a deeply personal one.

So let’s walk through this carefully.

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Canadians Are Living Longer

Life expectancy in Canada has indeed increased significantly over the past century. According to Statistics Canada, Canadians today live substantially longer than they did in the early 1900s.

However, it’s important to clarify something:

Life expectancy has increased gradually over decades — largely due to advances in medicine, sanitation, and chronic disease management. It has jumped by 20 years in just two generations, however it fluctuated slightly during COVID.

Insurance companies already price policies using updated mortality tables. Longevity trends are not a surprise to the industry — they are built into actuarial modelling.

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What Is MAID?

Medical Assistance in Dying (MAID) became legal in Canada in 2016 under federal legislation. It allows eligible individuals, under strict medical and legal criteria, to request medical assistance in dying.

It is not the same as a general “suicide clause,” and that distinction matters greatly in insurance.

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Is MAID Treated as Suicide in Life Insurance Policies?

This is the question most people want clarity on.

In Canada, most life insurance policies contain a suicide exclusion clause, typically stating that if the insured dies by suicide within the first two years of the policy, the benefit may not be paid (or premiums may be refunded).

However:

MAID is legally distinct from suicide under Canadian law.

As of today, most major Canadian insurers treat a death under MAID the same as any other natural death — provided:

• The policy has been in force beyond the suicide exclusion period (usually 24 months)
• There was no material non-disclosure at the time of application
• The individual qualified legally under MAID legislation

That said, policy wording matters. Each insurer’s contract language is what ultimately governs payout.

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Could Premiums Increase Because of MAID?

At this time, there is no clear evidence that MAID has directly caused increases in life insurance premiums.

Insurance pricing is based on large-scale actuarial modelling, and while MAID is factored into mortality statistics, it represents a relatively small percentage of overall deaths in Canada.

Insurers adjust pricing based on:

• Longevity trends
• Claims experience
• Investment returns
• Regulatory requirements
• Reinsurance costs

It is unlikely that MAID alone would dramatically alter premiums industry-wide — but insurers continually monitor mortality data.

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A Word About Some Of The Numbers Circulating

There are many statistics being shared socially about MAID — particularly regarding usage rates in care homes and the projected healthcare savings.

It’s important to approach these figures carefully.

While the federal government has acknowledged cost implications in policy discussions, MAID legislation was not introduced as a cost-saving measure. It was framed around autonomy, medical ethics, and end-of-life rights.

Any financial projections about long-term healthcare savings remain estimates — they are not guaranteed fiscal outcomes.

As planners, we focus less on speculation and more on documented contract language and current underwriting standards.

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What Matters Most For Policyholders

If you have life insurance and are concerned about how MAID could affect your policy, here’s what I recommend:

1. Review your policy wording
   Look specifically at the suicide exclusion clause and the incontestability period.
2. Confirm disclosure history
   Material non-disclosure can affect any claim — regardless of the cause of death.
3. Have a conversation before you need one
   It’s always better to clarify contract details proactively.

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The Bigger Picture

This is not just a financial topic. It touches ethics, autonomy, family dynamics, and deeply personal decisions.

Insurance exists to create certainty during uncertain times. The goal is not to speculate — it’s to understand how your specific contract works within today’s legal framework.

If this is a question on your mind, let’s review your policy together and ensure there are no surprises.

Because clarity brings peace of mind — and that matters.

Insurance For Newlyweds

Joint policies may seem attractive because of the cost savings. But it doesn’t cost much more to insure each life individually, and you or your spouse receives double the payout. For example, if you and your spouse are 30 years old, a joint 10-year term first-to-die policy worth $1 million insures both of you and costs about $787 annually (2014 rates). The contract pays out upon the first insured’s death to the surviving spouse. However, you could purchase two $1-million contracts for an annual premium of about $849. And the total payout from both contracts would be $2 million. Complications with joint policies can arise if your marriage falls apart. A divorce doesn’t invalidate a contract, so if you forget to cancel it, your ex-partner could receive an unintended death benefit. Also after divorce, you and your spouse may have to purchase insurance individually (depending on the type of original policy), and if either you or your spouse’s health has worsened, it may be difficult to get new coverage. Already insured Your parents may already have bought you life insurance. In that case, parents usually pay the premiums and are the beneficiaries. The parents own the contract and you are usually appointed as contingent owner. If the parent dies, the ownership automatically reverts to you, the insured child. When you marry, the family needs to discuss when you should take over the premiums based on financial ability, and whether the beneficiary should be changed to the new spouse. Subsection 148 (8) of the Tax Act allows a tax-free rollover from a parent to a child insured under a life insurance policy. Your uninsured spouse should also purchase a policy, even if he stays at home to care for children, since you would have to pay for childcare if he dies unexpectedly. If you can’t afford permanent insurance for the uninsured spouse, you can purchase term insurance and convert it when your finances are healthier. Make sure the policy you choose has this feature. Health insurance If both you and your spouse work, your advisor can help you decide whether to opt out of one of your health plans. For instance, if you have a 50% co-pay in your health plan and your spouse is fully covered, you could opt out of the first plan. But it could also be advantageous to keep both plans in place. That way, you may first claim under your own plan and then under your spouse’s plan to get more or all of the health expenses covered. Spouses should talk finance A 2013 BMO survey shows most married Canadians wish they’d discussed financial matters before walking down the aisle. While 98% of Canadians agree they should be on the same page as their spouses, when it comes to finances, most of them aren’t. A whopping 40% of these couples say they have different investing styles from their partners. It’s not surprising, then, that more than half of Canadian married couples have financial regrets, with 62% saying they wish they had discussed their financial pasts and plans before getting married. Types of policies Joint policies insure two lives on one contract and are underwritten by combining the health and ages of each life. The premium is determined by the average longevity of the two spouses. A joint life first-to-die contract pays out when the first insured dies, while a joint life last-to-die policy pays out after the second death. A joint last-to-die policy is better if you want to leave money for heirs or cover taxes after death. To discuss this further or to book an appointment, contact YourStyle Financial today!