Recently, I’ve been getting more questions about how Medical Assistance in Dying (MAID) might affect your Life Insurance benefit. Since this is a topic that’s been coming up often, I thought it would be helpful to share some insights from the industry.
First, it’s important to note that the suicide clause typically associated with personal Life Insurance policies does not normally apply to Employee Benefit Life Insurance. The 2-year suicide exclusion only affects personal policies.
In the past, my general response has been YES, the benefit would be paid, as long as it’s outside the 2-year suicide exclusion period. However, I recently learned some important new details that may change how we look at this situation.
How MAID Affects Life Insurance in Canada
In Canada, Medical Assistance in Dying (MAID) does not impact Life Insurance benefits, provided the legal process is followed. Here are some key points to keep in mind:
- Death is not considered suicide: According to the Canadian Life and Health Insurance Association (CLHIA), if the legal MAID process is followed, the death will not be classified as a suicide.
- Beneficiaries can still receive the death benefit: As long as the proper procedures are followed, beneficiaries are still entitled to receive the death benefit as specified in the policy.
- Insurers may request additional documentation: If MAID is listed as the cause of death, the insurer may ask for extra documentation to verify that all legal requirements were met.
The only potential complication could arise if insurance was obtained under false pretenses—for example, if the person was not truthful about their health or circumstances when applying for coverage.
If you have any further questions about how MAID or other factors might affect your Life Insurance policy, or if you’re looking to review your coverage, don’t hesitate to reach out. I’m here to help you navigate the complexities of Life Insurance and ensure that you and your loved ones are properly protected.
Feel free to contact me today for a consultation or to discuss your options. Let’s make sure you have the right coverage in place!
Pamela Glendinning, Glendinning Insurance Services (250) 764-0142
we are your Trusted Advocates