Life insurance for chronic illness in Canada: What you need to know

With files from Samantha Kohn

This article was originally posted on February 29, 2024 and was updated on February 27, 2026.

Life insurance is a core element of long-term financial planning for many Canadian families. It provides a financial safety net for your loved ones by paying a tax-free death benefit upon your passing. 

For Canadians living with a chronic illness or pre-existing condition, securing life insurance coverage can be more challenging and expensive. This is because you pose a greater financial risk to insurers, which often results in higher premiums. 

However, it is still possible to find protection that fits your needs and budget. You can do this by qualifying for a traditional life insurance policy or by purchasing specialized coverage, such as simplified life insurance. 

Here’s what you need to know about securing life insurance with a chronic illness in Canada.

What is considered a chronic illness under life insurance in Canada?

Diseases such as diabetes, cancer, heart disease, respiratory illness, high blood pressure and kidney disease are all considered chronic illnesses. According to the Canadian Public Health Association, chronic illnesses are the leading causes of death and disability in Canada. Approximately 44% of adults have at least one chronic disease, and these conditions account for 67% of all deaths in the country. Unfortunately, chronic illness is a reality for many Canadians, making life insurance a crucial consideration. 

How does life insurance work when you have a chronic illness?

When you have a chronic illness, you typically have two choices for purchasing life insurance: traditional life insurance or no-medical life insurance. 

Traditional life insurance

This type of policy is the most common and affordable. It refers to term, whole, and universal life insurance. However, to qualify for a traditional policy, you usually must undergo a medical exam. Canadians living with a pre-existing condition may not always qualify for this policy type or will face higher-than-normal premiums. 

Many traditional life insurance policies offer critical illness insurance as an optional add-on. Critical illness is designed to protect you should you develop a covered illness in the future. It is not for individuals with pre-existing conditions. There is usually a waiting period before a claim can be made, which discourages people from applying for this coverage if they have an undisclosed pre-existing chronic illness. 

No-medical life insurance

This type of policy is a specialized option that does not require a full medical exam. It refers to guaranteed life insurance and simplified life insurance (no-medical life insurance). Guaranteed life policies do not require any type of medical exam and will provide coverage regardless of your medical history. Simplified life insurance still requires a medical questionnaire, but not a physical exam. These policies are ideal for those with pre-existing chronic illnesses who don’t qualify for traditional coverage. However, they’re often more expensive and may come with coverage limits. 

How much does life insurance with a chronic illness cost? 

If you are living with a chronic illness or pre-existing condition, expect your life insurance premiums to be higher than those of someone without a pre-existing illness. The actual cost you’ll face depends on your risk factors, including your age, health status and how manageable your condition is. The older you are, the more likely it is that you’ll develop a health complication, which is why applying for coverage when you’re young is essential to securing a life insurance policy.

If you do not have a chronic illness but want to protect yourself in case you’re diagnosed in the future, you can add critical illness insurance to your life policy. Doing this is often inexpensive but depends on risk factors, including your age and health status.  

To get a rate that is specific to your needs, compare personalized life insurance quotes online today. 

Do I need disability insurance if I have a chronic illness? 

While it’s not necessary, you may want to consider disability insurance if you have a chronic illness. This type of insurance is designed to protect you if you're unable to work due to illness or injury, which can be beneficial for Canadians with chronic health problems. 

Unlike critical illness insurance, disability insurance does not provide a pre-determined coverage amount. Instead, it pays a percentage of your typical income. Disability insurance is often provided by employers as part of an employee’s group benefits total compensation package, but it’s important to read the details of that policy to ensure its coverage will meet your needs. 

The bottom line

Navigating life insurance with a chronic illness can be challenging, but there are options available to Canadians. The primary options include purchasing traditional life insurance, such as term or whole life, or purchasing specialized no-medical insurance coverage if you do not qualify for a traditional policy. With most traditional coverage options, you can add critical illness insurance as a rider for extra protection. You may also want to consider disability insurance to provide income support if you cannot work due to your illness. 

If you’re looking for coverage, compare personalized quotes on Ratehub today and connect with one of our trusted brokers to discover all of your options.

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