Planning MAID in Ontario: Your Life Insurance Coverage Remains Protected

Planning MAID in Ontario: Your Life Insurance Coverage Remains Protected

Understanding how Medical Assistance in Dying affects your life insurance benefits—and ensuring your family’s financial security remains intact.

Important Note: This article contains sensitive content about end-of-life decisions. If you or someone close to you needs support, resources are available at canada.ca/mental-health or by calling 9-8-8.

The Bottom Line: If you’re considering Medical Assistance in Dying (MAID) in Ontario, your existing life insurance policies will remain valid and your beneficiaries will receive full death benefits, provided you meet the legal requirements. Ontario law specifically protects insurance benefits for those who choose it as an end-of-life option.

MAID is Not Considered Suicide for Insurance Purposes

The most crucial point for anyone with life insurance to understand is this: Medical Assistance in Dying is not classified as suicide by Canadian life insurance companies. This distinction has profound implications for your coverage.

Why This Matters: Most life insurance policies include a suicide exclusion clause that prevents payout if death occurs by suicide within the first two years of coverage. Because MAID is not considered suicide, this exclusion does not apply—regardless of how long you’ve held your policy.

Industry Position: The Canadian Life and Health Insurance Association (CLHIA) has stated definitively that member companies would not treat deaths resulting from MAID as “suicide” for policy purposes, provided the legislated process has been followed.
 

Ontario’s Specific Legal Protections

Ontario has passed specific legislation ensuring that this choice as an end-of-life option may not be used as a reason to deny insurance benefits under a valid policy. This provides an additional layer of protection beyond the industry’s voluntary position.

What This Means:

• Your life insurance benefits cannot be denied based on choosing MAID
• Your beneficiaries will receive the full death benefit
• The timing of when you purchased your policy is irrelevant
• Ontario law specifically protects your insurance rights

Understanding MAID Eligibility in Ontario

To ensure your insurance remains protected, it’s important to understand that it must be provided according to federal legal requirements. In Ontario, you must meet all federal eligibility criteria and follow the proper legal process.

Current Eligibility Requirements:

• Be 18 years of age or older with decision-making capacity
• Be eligible for publicly funded health care services in Canada
• Have a grievous and irremediable medical condition
• Be enduring intolerable physical or psychological suffering
• Make a voluntary request free from external pressure
• Give informed consent after receiving all treatment information

Important Exclusion: Eligibility for MAID for persons suffering solely from a mental illness has been delayed until March 17, 2027. However, neurocognitive disorders such as dementia, Huntington’s, and Parkinson’s are not considered mental disorders and are not included in this restriction.

What Your Insurance Company Will Need

When a MAID-related claim is filed, insurance companies will ask for the cause of death and the underlying medical condition. If MAID is listed as the cause of death, the insurer may request additional documentation supporting the procedure, along with regular claim requirements.

Typical Documentation Required:

• Death certificate indicating MAID as the cause of death
• Documentation of the underlying medical condition that led to MAID
• Proof that the legal MAID process was followed
• Standard claim forms and beneficiary identification

Important Note: While insurers cannot deny claims based on the procedure itself, they retain the right to investigate for misrepresentation during the application process or exclusions specifically included when the policy was issued.
 

Estate Planning Considerations for MAID

When planning, several estate planning elements deserve special attention:

Life Insurance Beneficiary Designations

Ensure your beneficiary designations are current and properly documented. Since MAID allows for planned timing, you have the opportunity to:

• Review and update all beneficiary information
• Consider contingent beneficiaries
• Ensure proper documentation is in place

Timing and Final Affairs

MAID provides the unique opportunity to plan your final affairs comprehensively:

• Financial Organization: Complete all banking and investment matters
• Document Location: Ensure important papers are accessible to your estate trustee
• Digital Assets: Provide access instructions for online accounts
• Personal Property: Distribute sentimental items according to your wishes

Communication with Family

While there’s no legal requirement to inform family members about your decision, you’re strongly encouraged to discuss this with those you care about. This communication can:

• Reduce family stress and confusion
• Ensure your wishes are understood and respected
• Allow for proper goodbye processes
• Prevent potential estate disputes

Provincial vs. Federal Coverage

MAID Services: If you’re eligible for publicly funded health care services in Canada, the cost of assessments, medications, and procedures are fully covered.

Insurance Claims: Life insurance claims are governed by federal insurance regulations and provincial insurance laws, both of which recognize the legitimacy of MAID.

Steps to Protect Your Insurance Coverage

1. Review Your Current Policies

Contact your insurance company or advisor to:

• Confirm your policy details and coverage amounts
• Review beneficiary designations
• Understand any policy-specific provisions
• Document current policy status

2. Maintain Honesty and Transparency

Insurance companies can still void policies for misrepresentation. If you’re considering MAID:

• Don’t hide your medical condition when purchasing new coverage
• Provide complete and accurate health information
• Keep detailed medical records

3. Work with Qualified Professionals

Ensure your process meets all legal requirements by working with:

• Qualified physicians or nurse practitioners
• Proper medical assessment procedures
• Legal documentation requirements
• Estate planning professionals

4. Document Everything

Keep comprehensive records of:

• All medical assessments and documentation
• MAID eligibility determinations
• Legal compliance with federal requirements
• Estate planning decisions and communications

Addressing Common Concerns

“Will my family face insurance challenges?” No. When MAID is provided according to legal requirements, insurance companies treat it as a standard death claim.

“Does the timing of my policy matter?” No. Unlike suicide exclusions, MAID claims are not subject to waiting periods.

“What if I have multiple insurance policies?” All legitimate life insurance policies should honour MAID claims equally, provided legal requirements are met.

“Should I notify my insurance company in advance?” While not required, some people choose to speak with their advisor to understand the claims process their family will face.

Moving Forward with Confidence

Choosing MAID is a deeply personal decision that requires careful consideration of medical, legal, and personal factors. From an insurance perspective, you can move forward knowing that:

• Your life insurance benefits are protected under both industry standards and Ontario law
• Your beneficiaries will receive full death benefits
• The legal MAID process is recognized and respected by insurance companies
• Your estate planning can proceed with confidence in these protections

Professional Guidance: While MAID insurance coverage is well-established, consider working with both estate planning professionals and insurance advisors to ensure all aspects of your planning are coordinated and complete.

The Peace of Mind Factor: Understanding that your insurance coverage remains intact can provide crucial peace of mind during an already challenging time, allowing you to focus on what matters most—your health, your family, and your wishes for end-of-life care.

This article provides general information and should not be considered legal or medical advice. MAID is a complex medical and legal process that requires professional guidance. Always consult with qualified healthcare providers, legal professionals, and insurance advisors for advice specific to your circumstances.

Check out our article on Solo Agers in Ontario: A Comprehensive Lifestyle Plan for Seniors Without Family Support