Florence Steele, known as Flo, a 75-year-old with a core of steel, was married to her husband Harold for 55 years. For decades, she worked as an administrative assistant and he as a trucker.
The hard-working couple from Delaware, Ont., believed in planning ahead in life. In December 2019, the Steeles decided to contact ivari, a widely advertised Toronto-based insurance company, for life insurance.
Funeral costs can be expensive, and this seemed like a logical choice. Flo and her partner obtained $12,000 of coverage for each other after filling out health questionnaires.
Harold passed away in April of this year after a battle with cancer and pneumonia. After filing a claim under her husband’s life insurance policy a week and a half later, Flo was devastated when ivari denied her claim because of alleged “inaccurate answers” on the original health questionnaire.
They issued a second denial letter just over a week later. Flo was crushed. Her daughter Danielle told Global News that the denial by ivari has been traumatic.
After dealing with insurance companies for almost two decades, I am not surprised by ivari’s conduct. Insurance companies sell a unique product to consumers: peace of mind.
Unfortunately for Flo, she got the opposite from ivari, despite never having missed a premium payment. In fact, the insurer even charged her for April, which is when Harold passed away.
Flo’s experience is not unique. In my experience, life insurance claims are often denied because of alleged misstatements or inaccuracies in the initial applications for insurance.
When a loved one passes away, people expect insurance providers to do what’s right. Here are three things to do to help protect yourself from having your life insurance claim unfairly denied.
1. Use a licensed insurance broker
A licensed insurance broker can help you determine the right life insurance coverage for you and will often know which insurers have a better record of honouring claims.
You have options when it comes to life insurance, so it’s important to get coverage that fits your needs.
2. Review your insurance policy carefully
Before filing a claim, it’s important that you completely understand your insurance policy. Carefully read the agreement from beginning to end, even if its contents are difficult to comprehend.
If something in the policy doesn’t make sense to you, don’t be afraid to ask your insurance broker or the insurer directly. You have the right to ask plenty of questions until you completely understand your policy.
READ MORE: Most common mistakes people make when they are denied long-term disability
3. Consult your doctor before completing health questionnaires
If possible, speak to your doctor before answering a health questionnaire provided by your insurer.
They can help you accurately fill out the form by giving you a full picture of your medical history. There might also be information in your doctor’s records that is crucial for some of the questions asked.
READ MORE: ‘Get full support from your doctor’: Disability lawyer’s guide to making insurance claims
Don’t accept a life insurance denial without speaking to a lawyer
The lesson from Florence Steele’s case is simple: if you are denied a life insurance claim, don’t accept the decision without speaking to an insurance lawyer.
READ MORE: What to expect when hiring a lawyer to fight your disability claim denial
In a letter to ivari on behalf of Flo, I cited Ontario’s Insurance Act. An insurer can only cancel a life insurance policy due to misstatement or inaccurate answers within the first two years of the agreement.
After the two-year mark, the policy can only be revoked if the insurance company can prove that the claimant committed fraud. This is the incontestability provision in the Insurance Act, which was included in Harold Steele’s life insurance policy back in December 2019.
Fraud, however, is rarely the case in these situations — including for the Steele family, meaning that Flo is entitled to the $12,000 under ivari’s policy.
When an insurer denies your claim, you can take legal action. In some cases, the courts have hit insurance companies with significant punitive damages, which are meant to punish insurers for bad-faith and egregious conduct.
At Samfiru Tumarkin LLP, our lawyers regularly resolve life insurance, mortgage insurance and long-term disability claim denials. Our firm can help ensure you get the compensation that you are owed.
Life insurance claim denied? Is the insurer refusing to reassess the denial?
Contact the firm or call 1-855-821-5900 to secure assistance from an insurance lawyer in Ontario, Alberta or British Columbia. Get the advice you need — and the compensation you deserve.
Sivan Tumarkin is an insurance and disability lawyer, and co-founding partner at Samfiru Tumarkin LLP, Canada’s most positively reviewed law firm specializing in insurance and employment law claims. He provides free advice as a host of Canada’s only Disability Law Show on TV and radio.