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