Canada’s opioid crisis may be stabilizing, but it is far from over. For life insurers, its impact is still developing.
According to national data from the Council of Chief Medical Officers of Health, opioid toxicity deaths decreased by 8.9% in 2024 compared to 2023. While this decline appears significant, about 20 people still die from overdoses each day. This is roughly 2.5 times higher than when the opioid-related public health emergency was declared in 2016.
Our team at MyChoice decided to have a closer look at the opioid-related deaths across Canada and see what the recent trends mean for life insurance coverage.
How Is Canada’s Opioid Crisis Affecting Life Insurance?
Life insurers may use existing underwriting rules to assess an individual applicant’s health, treatment, medical history and substance-use history. Individual situations must be reviewed to determine if and what coverage may be offered under each insurer’s then-current underwriting guidelines for the requested coverage.
What The National Data Actually Measures
The national dashboard presents death counts based on data collected by provincial and territorial surveillance programs. It doesn’t include any data on life insurance policyholders, applicants, premiums, or decisions made in relation to applications and claims.
A recent federal analysis of polysubstance toxicity deaths reported a rise in deaths involving three or more substance groups from 20% of opioid or stimulant toxicity deaths in 2018 to 42% in 2023. This study included data from as many as 10 provinces and territories, varying by year, and had several limitations. This study deepens understanding of polysubstance toxicity, not a broad swath of life insurance applicants.
Which Demographics Are Most At Risk?
The 2024 age and sex findings suggest that this burden is not equally distributed. However, these findings do not justify assumptions that a person has a history of opioid use based on their age, sex, postal code, or occupation. An insurance application should be based on the relevant facts about that particular applicant.
The Impact Of The Opioid Crisis On Life Expectancy
Greater death tolls among younger people can affect population mortality measures.
None of these sources provides a figure for how much opioids alone are reducing Canadian life expectancy today, so we will not convert opioid deaths into a contemporary life-expectancy estimate here.
What This Means For Life Insurance
| Evidence | What it can support | What it cannot support |
|---|---|---|
| National toxicity surveillance | The magnitude, temporal pattern, and demographic profile of reported mortalities. | Individual insurer’s pricing determination/approval decision. |
| An applicant’s medical record | Diagnoses, prescriptions, treatment, clinical history etc., as relevant to the questions asked. | Outcomes cannot be guaranteed without the insurer’s review. |
| An insurer’s current application and manual | Questions from insurer, specific requirements for the case. | A durable, market-wide rule for every carrier. |
| A policy contract | Issued coverage, policy exclusions and terms of the claim. | Making promises about a different product or a future application. |
Can I Apply For Life Insurance If I Have An Opioid Addiction?
Yes, you can apply, but approval is not guaranteed. Insurers may request additional health-related information, including supplemental questionnaires, medical records, test results, or a medical exam. After considering all information, an insurer can accept the application and offer coverage, offer coverage with adjusted rates, defer coverage pending further review, or decline coverage.
Be clear that opioid use disorder, which is the correct clinical term, is a diagnosis that is separate from a history of prescribed opioid use for pain management, current treatment with opioid agonists for opioid use disorder, or a history of one-time opioid use. Be clear in explaining which situation applies to you.
Before applying, it helps to contact a licensed broker or agent who can send an anonymous summary of your situation to see whether any companies might be interested. This preliminary view is not an offer and may change when an insurer sees the complete application and records.
Read More: See How Health Records Affect a Life Insurance Review
What If I’m Currently In Recovery?
No regulator-established length of sobriety guarantees you’ll be approved for life insurance in Canada. Each insurance company can set different recovery criteria. These guidelines can also change from year to year.
Being stable, having a treatment plan in place and providing specific information may help the underwriter’s decision; however, recovery is a very individual journey. It’s important to provide a chronologically organized, factual history of the situation including diagnoses, medications prescribed, the timeline of any treatment, any aftercare and any other significant health-related events.
Answer all of the specific questions asked on the application. If a question isn’t clear, don’t guess; call the insurance company or your licensed representative and ask them to clarify the question in writing.
Read More: Review How Life Insurance Underwriting Assesses an Application
If Traditional Coverage Is Not Offered
Find out what decision was made: a decline, postponement, higher premium or request for more evidence. If deferred or more evidence is required, ask when the insurer will reconsider and on what basis. Keep in mind, this does not necessarily mean coverage will be available in the future.
Investigate conversion rights for employer or association coverage before losing eligibility.
Explore simplified-issue and guaranteed-issue policies. Understand the rules of eligibility, health questionnaire, benefit limitations, premiums, graded benefits for early death, etc.
Recalculate the household need in light of any coverage limitations. Develop savings goals and other strategies to offset any coverage gaps.
Read More: See Your Options After a Life Insurance Application Is Declined