The couple had to complete a new application for insurance at each renewal and, by the third renewal; the husband had been diagnosed with cancer. As a result of a misunderstanding of the time periods expressed in the application, the husband innocently represented that he had not been diagnosed with cancer.

The insurer refused to pay, stating that the insurance would not have been renewed if the application had been correctly answered.

A somewhat similar case tried in 2001 reached a different result to the benefit of the surviving spouse. A couple insured their lives to cover the repayment of a mortgage with a term of 12 months.

They were unable to get insurance when they applied to renew the term because the wife had been diagnosed with cancer. The mortgage fell into arrears; the lender foreclosed and then sued the husband for a deficiency of approximately $144,000.

The husband’s defence was that the mortgage company representative had failed to clearly inform them of the important provisions of the insurance policy they purchased.

Although the representative discussed longer terms for the repayment of the mortgage, he did not make them ware that if they chose a 12-month term they would have to reapply and re-qualify for insurance.

They were denied the opportunity of considering other alternatives, such as a longer term, whole life insurance or another mortgage company, because they were not made aware that the wife’s cancer would disqualify them.

While the judge accepted this defence, he found the husband to be contributorily negligent for failing to ask questions or read the insurance policy. That meant that the husband had to pay 50 per cent of the mortgage company’s claim.

In many cases, even though consumers provide information about their state of health and other pertinent details when applying to the bank, that information is frequently not forwarded to the insurers until a claim is filed.

In this case, a couple from the Eastern Townships who applied for mortgage insurance when they applied for a mortgage with the National Bank of Canada, included in their declaration that the woman was undergoing cancer treatment.

The couple paid insurance premium until the woman’s death 22 months later. But the insurance company rejected the mortgage-insurance claims filed after her death, saying that the woman had not been insurable from the outset, even though the bank had issued a policy.

Contact me to make sure this doesn’t happen to you!

I have access to other investment vehicles for high net worth clients in addition to Segregated and Mutual funds.

These managed portfolios or investment pools provide you the investor with institutional solutions for your individual investment needs. The managers of these portfolios or pools manage billions of dollars on behalf of individuals, trust funds, and institutional funds.

The minimum investment is $25,000 to  $150,000.

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Disability Insurance

Canada Life, Manulife, RBC/UNUM, Great West Life, The Edge

Critical Illness Insurance

AXA, BMO Life, Canada Life, Desjardins Financial, Empire Life, Equitable Life, Industrial Alliance, RBC Insurance, Standard Life, Unity Life

Group Insurance

Assumption Life, Desjardins Financial, Empire Life, Equitable Life, Great West Life, Industrial Alliance, Manulife, Standard Life, Sun Life

There is no cure!

The doctors indicated that at some point my kidneys would cease to function and I would require dialysis and if lucky a kidney transplant from a donor.

I subsequently moved from Vancouver and became a Realtor in Kelowna. In January of my second year, my kidneys shut down.

Unfortunately, I spent most of the year in a hospital either in Kelowna or Vancouver. After a number of months on dialysis; I was fortunate in that a living donor came forward with a kidney and the transplant was successful.

However, being self-employed and not able to qualify for disability or critical illness insurance; I had to use my savings and credit cards to fill in the gap. At the end of the year, my savings were gone and I had credit cards loaded up to $80,000.

Don’t let this happen to you!

“You have 38 to 43 Percent Chance of Developing Some Form of Cancer!

A Relatively New Type of Insurance is Designed to Manage the Risk of Certain Dreaded Diseases.

Critical Illness policies will cover the top four health conditions:

1.     Cancer- You have 38 to 43 percent chance of developing some form of cancer!

2.     Heart Attack- 70,000 heart attacks occur each year in Canada (EST)

3.     Stroke – Over 50,000 strokes occur in Canada each year (EST)

4.     Heart Bypass Surgery – A surgical procedure to bypass blocked heart arteries with a graft.

Thereafter, up to 23 other illnesses and conditions can be covered such as;

blindness

deafness

kidney failure

major organ transplants

multiple sclerosis

paralysis

coma

others particular to each insurer

Critical Illness insurance pays a lump sum benefit to the insured, if the insured is diagnosed with any critical illness covered in the policy.

The benefit may be used in whatever way the insured wishes. It can be used to fulfill “dreams” (that always-wished for trip or holiday) or for more practical uses (retrofitting a vehicle or the home) or to buy health services through a private health-care system, such as those available in the U.S.

However, critical illness policies are most commonly used to remove the financial burden once the insured becomes critically ill and is unable to work. In this context, it will be used to provide the necessities of life, not fulfill the dream list.

It is not based on the insured’s inability to work, unlike disability insurance!

It is not based on income, unlike disability insurance!

You Establish the Amount!

Yes! You can continue to work if possible!

PS. If you don’t have a claim you can have your premiums returned with a Return of Premium Rider!