Many people take out life insurance so that their loved ones are financially secure once they have passed away. You may think you are protected once a policy is issued, but that is not the case.
Most insurance companies only check the details of your Application once you make a claim. A recent client of ours applied for life insurance. The Application form asked if he had been treated for chronic kidney disease in the past 24 months. He answered no. In fact he had chronic kidney disease for the past two years but it was completely controlled by his physician so he believed the answer to be no.
When he passed away his wife applied to their insurer for the proceeds of their life insurance but was denied. Although we were successful in achieving a positive result, it is extremely important to complete your Application correctly and, if needed, with the help of your family doctor. It is also important to remember that if an applicant fails to disclose information the policy may be withdrawn or a claim may be denied. Make sure that you review your Application very carefully before you send in the Application to the insurer.
In the recent case Cheetham v. TD Life Insurance Company, the court ruled that an insurance company was within its rights to deny payment of life insurance benefits to the widow of a man who died of brain cancer but failed to disclose unrelated health issues on his insurance Application.
“Regrettably, as difficult and tragic as the facts of this case are,
the insurance company was within its rights to deny the claim.”
Make sure you are vigilant when filling out your Application for insurance. If you have any questions regarding your life insurance policy, do not hesitate to call Douglas Strelshik Law.