Life Insurance Questions- Is Life Insurance a Scam?

Posted on May 24, 2017 and updated January 22, 2019 in Life Insurance Canada News, Life Insurance Questions - We Have The Answers 3 min read
Is Life Insurance a Scam?

Today’s Question: Is Life Insurance a Scam?
I have actually been asked this question quite a few times over the years and it has a bit of a negative connotation to it. To those who have never really researched Life Insurance, it is easy to see why they may have some reservations. Life Insurance is something that an individual must really learn about in order to obtain knowledge of all its benefits. Let’s take a look at it and dive into the details.

 
 

Life Insurance pays off if the insured person passes away while the policy contract is in force. However, there are certain pre-requisites- the Insurance Company is assuming that the information that they are being given is accurate. If the insured does not truthfully disclose information on the application or misstates information, the Insurance Company cannot accurately assess the risk. This can result in a claim being contested or denied. Ensuring that you provide truthful, complete, and accurate information will provide better results for the insured as well as those who may rely on the coverage.

My suggestion is, if you are not sure about a question on the application or related forms, make sure you get clarification and that you get the clarification in writing. It is very important that you disclose all the information as clearly and precisely as possible.

In short, Life Insurance poses a plethora of benefits and once it is truly understood, the benefits become obvious. It is therefore to your benefit to consult with an independent broker who is familiar with the various available options and solutions that will best suit your individual needs. They will provide you with the answers you need to empower you to get the best possible value and knowledge so you can make informed decisions in your best interests.

Still have questions? We have plenty of answers here!

Thanks to Ami Maishlish for his help with this post. Ami Maishlish is the President and CEO of CompuOffice Software Inc., a specialty and custom software firm serving the financial sector in Canada and abroad. CompuOffice Software Inc.’s products include LifeGuide Professional Software, which was designed by Ami in 1989, based on an earlier version that he created a decade earlier. LifeGuide is the leading, and most widely used, multiple-insurer support software in Canada.

Ami was also one of the first Experts interviewed in our Life Insurance Expert series, find out more about him here!

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