Buy it while you're healthy: how underwriting really works

Why timing beats everything

Underwriting only gets stricter with age and diagnoses. The 30-year-old in good health has an asset most people don't realize they're holding: the ability to lock in decades of coverage at preferred rates. Wait, and every birthday costs more; get a diagnosis, and you may face rated premiums, exclusions, or a decline. If you know you'll need coverage, applying while healthy is the single highest-value move.

The underwriting process, step by step

1. Application — health, family history, lifestyle, occupation, hobbies.
2. Tele-interview — a follow-up phone questionnaire on your history.
3. Evidence — sometimes a paramedical exam, bloodwork, or an Attending Physician's Statement from your doctor.
4. Decision — the insurer assigns a rate class or, occasionally, declines or postpones.

Rate classes — what moves your price

Conditions underwriters weigh heavily include BMI, blood pressure, cholesterol, diabetes, cardiac and cancer history, mental-health treatment, and sleep apnea. Many are manageable — being upfront and well-controlled helps your class.

Honesty and the contestability period

Answer every question truthfully. A material misrepresentation — a hidden condition, understated drinking or smoking — can let the insurer deny a claim, especially within the two-year contestability period after the policy starts. After two years, claims are generally incontestable except for fraud. The short-term "savings" of shading the truth is not worth a denied claim your family can't appeal.

Nicotine and cannabis

Any nicotine, including vaping and occasional cigars, typically moves you to smoker rates, which can double the premium. Cannabis is treated more favourably than it once was — occasional use is often fine at non-smoker or near-non-smoker rates — but rules vary by insurer and by frequency, so ask before assuming.

The MIB (Medical Information Bureau)

Insurers share coded underwriting information through the MIB to catch inconsistencies across applications. It's another reason to be consistent and honest: an answer on one application that contradicts another can be flagged.

Genetic testing — you're protected

Canada's Genetic Non-Discrimination Act prohibits insurers from requiring you to take a genetic test, or to disclose the results of existing tests, as a condition of coverage. The Supreme Court of Canada upheld the law in 2020. You can pursue genetic testing for your own health without it being used against you in underwriting.

Locking in future insurability

If you're young with a rising income or planning a family, guaranteed-insurability and future-income riders let you buy more coverage later without a new medical — a cheap hedge against a future diagnosis. If you're already hard to insure, simplified-issue (few health questions, higher price) and guaranteed-issue (no health questions, capped amounts, waiting periods) policies can still get you covered.