2009 survey data show that cocaine and its derivative drugs are among the most used drugs by teenagers and adults, second only to marijuana.
Although few actually get involved in cocaine use, in contrast to the 10.6% that use cannabis derivates, approximately 11% of Canadians used an illegal drug in the year of the survey. These six drugs include heroin, ecstasy, cocaine and/or crack, speed, hallucinogens (excl. salvia) and marijuana. 17.7% of men and 7.6% of women had tried out drugs, with youth reaching 27.3%.
Despite the fact that the statistics show a reduction in drug use on the whole, there are plenty of former users and addicts who may find themselves looking for life insurance at some point.
You may have guessed that life insurance companies in Canada do not deal with cocaine use or other harsh recreational drug past with much sympathy. Ongoing drug addiction will result in an instant dismissal. This is due to the fact that unlawful drug use is an unfavourable LINK1:pre-existing medical condition. Current drug users may still be eligible for simplified issue insurance policies. These policies have no medical testsand usually do not ask drug related medical questions.
This is how leading insurance companies view cocaine, heroin and ecstasy:Present addiction to heroin, cocaine or ecstasy will result in an instant dismissal.Cocaine, heroin and/or ecstasy addiction ended over four years ago will probably incur a policy rating if there are no ongoing health issues. A policy rating means that the applicant qualifies, but pays an additional premium premium on his or her policybecause the insurer must carry bigger risk. Ratings are usually in multiples and can be anything from 1.5x to 5x thetypical policy tariff.If the applicant gave up on taking drugs more than four years ago, the applicant may be eligible for standard premiums (i.e. without policy rating). Of course, this only holds if he or she has no additional underlying health problems and lifestyle issues.We recommend finding an insurance advisor who has long-term experience working with Canadian insurers on insuring drug users.
The author is an insurance specialist and an expert on hard-to-insure clients. He works with over a dozen Canadian insurers, such as Manulife life insurance and Sunlife life insurance.
