Making Sure Your Family Gets Paid

Family Gets Paid Life Insurance

You bought life insurance with the understanding that if you died your family would be protected. How do you make sure those financial benefits will be there for them? Understand your contract.

All life insurance policies have an “incontestability period” – a time limit (usually two years) during which the life insurance company has the right to dispute a policy’s validity based on information provided incorrectly on the application.

Even though an inspection report is obtained, and in some cases a medical examination is performed, the company relies a great deal on the answers given on the application when deciding whether or not to issue a policy.

It is important to remember that if an applicant fails to disclose information that would cause a policy not to be issued or to be differently rated, the policy may be withdrawn or a claim may be denied within this period.

With the policy in force after the incontestability period ends, the insurance company no longer has the right to deny claims or rescind the contract even if a misstatement in the application is discovered.

The policy owner will receive all the benefits as stated in the contract – claims will be paid and the policy cannot be withdrawn. This provision, however, does not apply in cases of fraud.

An example of this might be an applicant who is diabetic if this question is answered "no" when it should be answered yes a policy claim would likely be denied. The reason being applicants who apply for life insurance and are diabetic are generally rated i.e. pay a higher premium for the extra risk or declined. By mis-stating the answer to this question the insurance company was not given the proper information to assess the risk of the insured. They would have issued a policy with a given premium that they would not have normally issued if they had the proper information

Life insurance contracts also have a suicide clause, which specifies that the proceeds of the policy will not be paid if the insured takes his or her own life within a specified period of time (usually two years) after the policy is issued.

Many people don’t realize that if they replace an existing life insurance policy with a new policy, they will be subject to a new incontestability and suicide period.

Another detail to examine when reviewing your life insurance contract is policy exclusions – an “exclusion” is a statement in a policy which describes a condition or type of loss that is not covered by the policy. A common exclusion is an exception for accidental death caused by an “act of war” or death “while in active military service.”

Applicants who participate in hazardous activities such as skydiving or acrobatic flying may also have death exclusions in their policy as a result of these high-risk activities. Another exclusion to be aware of is a limitation on the policy payout if the insured is injured or dies in a restricted country.

Many insurance companies will either add a surplus premium or an exclusion clause for frequent visits to what they deem to be a high-risk region. It is crucial that the policy-holder is made aware of these details by his broker, and understands the potential implications.

The application wording can vary from company to company, and this can have a direct impact on any exclusions inserted in the resulting policy. As an example, Company A asks whether “the insured has or plans to travel outside of North America in the next 12 months,” while Company B asks whether “the insured has or plans to travel outside of North America in the next 36 months.”

This slight difference may result in Company B adding a travel exclusion clause to its policy, while Company A’s policy will not have one.

Buying life insurance is a prudent and selfless decision, but be sure that you fully understand the contract – its terms, conditions, limitations and exclusions – before you sign on the bottom line. Any ambiguities should be cleared up to your satisfaction by your adviser, and noted in writing.

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What Clients Say About LSM

life insurance testimonialsYou have a great website and your team does a top notch job. ...1 of 84Aidan Mackenzie Read more


  1. Lori 11/17/2009 at 12:22 pm

    If a person dies, is the beneficiary named on it, protected by creditors?


  2. LSM Insurance 11/17/2009 at 3:05 pm

    Thanks for the note – this is a gray area. Life Insurance proceeds are classified as a special asset.

    Creditors can make a claim in a lawsuit, but unless they can show a claim was looming then the creditors’ attack will probably be unsuccessful.

  3. Normita Walker 01/28/2010 at 11:02 am

    Please give us suggestions on term life insurance we never had any . This is our first time purchasing. Birthdate. June 6/52 Husband March 11/53. He is a smoker. Joint term life for $500,000. is more than enough at the moment. Looking for 10 years term.

  4. LSM Insurance 01/31/2010 at 10:36 am

    Thanks for your note.

    Depending on your health and your family health history you may qualify for preferred rates.

    I will send you a separate email shortly

  5. ac 01/31/2010 at 10:57 am

    Travel exclusions: can an insurance company remove your right to travel to a certain destination (i.e. they say they will offer coverage provided you never travel to X country)? Perhaps you can provide an example of an actual travel exclusion. Thanks.

  6. LSM Insurance 01/31/2010 at 9:27 pm

    Insurance companies can not prevent you from traveling to a certain region. But they can place exclusions if death occues in certain countries.

    i.e. if an applicent traveled frequently to the middle east they may exclude certain ares. This would be clearly indicated on the policy and applicant will usely have to sign off on the areas excluded.

  7. harry 02/12/2010 at 4:12 pm

    hi there
    i m in process of buying RBC term life insurance for 20 yrs.
    Premium is $38.12/ month.(400k)
    What are your thoughts on RBC life insuarnce.

  8. LSM Insurance 02/15/2010 at 3:10 pm

    Hello Harry,

    Thanks for the note. RBC Insurance has a very solid reputation. But it never hurts to check how they stack up against other companies.

    They do have some limitations in their Term lineup i.e. they only offer 10 and 20 Year Terms. Industrial Alliance by comparison offers Term policies with fixed rates for as long as 40 years.

    Regards … Lorne

  9. Kathryn 03/24/2010 at 9:49 pm


    I am very clueless to this whole thing. My Hubby is Canadian military and we have a policey through the Canex – Believe the the payout is around $400K per person.
    Now we have 2 small children and I want to get another policy with another company… I am 29 and Hubby is 27. Reading this has really opened my eyes …BUT makes me scared that I will choose something that is not good for us…I feel like you really can not trust the brokers… Do you have any suggestions on companies that have a good track record…

    Any help in this matter would be great !!

    Thanks :)

  10. LSM Insurance 03/25/2010 at 10:16 am

    Hi kathryn,

    Thanks for the note. I’m happy to help out make sure the life insurance company is a member of Assuris and make sure you double check your application so that any questions are answered correctly.

  11. Ian 04/13/2010 at 8:49 pm

    what is the average time for a policy to be paid out after death

  12. LSM Insurance 04/14/2010 at 12:51 pm

    Hi Ian,

    Thanks for the note.

    An average claim takes 2 weeks to process.

    This will be longer if the policy is under 2 years and shorter if the policy is over 2 years.

    The broker can to do a lot hasten the process
    1. Making sure the initial application contains accurate information.
    2. Making sure the claimant has the appropriate form(s) to complete
    3. Tracking the claim with the insurer

  13. Marjorie 07/07/2010 at 3:56 am

    I need some advice, my ten years term will be expire this year, I wonder if I can get insurance for $500,000 to cover my mortgage ,if something come up/ I have my daughte whom has three girls, and I want to be sure she can get the house with out paying the rest of the mortgage, if I am not around anymore That is the only inheritance can get from me but I owe almost close to the amount I intend to get to any insurance company. Your suggestion will be appreciated


  14. LSM Insurance 07/07/2010 at 8:02 am

    Thanks for the note. We are to help out and we’ll send you a separate email now. Regards,

  15. JOHN 09/09/2010 at 9:51 am


    i AM LOOKING FOR LIFE INSURANCE ,, $150,000 10 year term aged 59 nearly 60 born jan 1951 but I am a smoker. in good health otherwise.
    is a joint policy more benefical than separate policies for a couple?

    thank you

  16. LSM Insurance 09/09/2010 at 10:32 am

    Thanks for the note John. We are happy to help and will be in touch by email shortly.

  17. Dennis 09/22/2010 at 8:11 pm

    I was denied a disability claim from …. insurance by a remark made by my doctor three years prior to my heart attack. I was unaware of the comment that was made therefore i did not disclose this when i filled out my application. The doctor wrote a letter to the insurance company stating that it was not a diagnosis as they condition was never again discussed or there were no test or fact to substantiate the comment. The insurance company is still refusing to pay the claim. What can I do I can not work I have no income to sue.

  18. LMK 09/23/2010 at 5:49 pm

    Landy Marr Kats LLP has experience handling many similar cases. Often we can successfully pursue a case which was initially denied.

    Each case is a little different. I need you to send me the insurer’s rejection letter, the policy of insurance the application for insurance and the doctor’s entire file.

    If you are an Ontario resident I may be able to help you.

    There are time limits for pursuing claims and if not legal proceedings are not started in time you can lose your right to sue forever.

    Contact me as soon as you can.

    Sam Marr
    416-221-9343 ext 230
    [email protected]

  19. kris 02/15/2011 at 12:33 am

    Hi, I’m 39 yrs old male, stopped smoking 2 months ago and looking for insurance of 2,00,000. I have been to the doctor a few times for different reasons (maybe I worry too much). Got tested for a bunch of stuff, but never found any major problem for anything. But I still worry that I might forget something during filling up the documents. Also, I did not have a fixed family doctor for a long time. Can they not find out from all the doctors before giveng me a Life insurance, so that there is no suspense at the end of the day? What if I genuinely forget something? This is worrying me a lot. Is there an insurance company who does these checks before I get the insurance? Also, are some insurance companies better that others when it comes to claims? Too many questions, but your reply would be greatly appreciated.

  20. LSM Insurance 02/15/2011 at 11:44 am

    Hi Kris,

    Thanks for the note. The onus is on the insured to make sure the applicant answers the questions correctly. They may write your doctor at the time of application. In terms of claim paying we are not aware of data which lists the claims paying performance of different companies.

  21. Linda 04/02/2011 at 1:18 am

    Hello – My brother committed suicide and I’m wondering what will now happen with his life insurance policy – if any benefits will pay out? He had a good job at the same college for the last 10 years – probably paid into (group life) insurance for most of that. He made an unsuccessful suicide attempt about 1.5 years ago and has a medical history of treatment for anxiety, depression and so on. Do life insurance companies pay benefits when a policy is in place for several years, and the person has been receiving long-term medical treatment? Any general thoughts or comments on this matter would be appreciated, as it is a whole new (unfamiliar) subject for me.

  22. LSM Insurance 04/02/2011 at 1:39 pm

    Hi Linda,

    I’m sorry to hear that. Most life insurance policies have a 2 year suicide provision meaning the death benenfit will not pay out if the insured dies in the first 2 years.

    The one caveat is if the insured mistated a material fact on the intial application – if that is the case the insurance company could deem the policy Null and Void.

    I would check with the insurance company or the writing broker for more details.

  23. Lisa 06/08/2011 at 10:30 pm

    hi..similar question as asked before my brother committed suicide and had a life insurance policy for approx 20 years thru work..and it has only been in the last couple years he became suicidal..also if his creditors were owed money at the time of his death for example sending collection notices would i be responsible to pay those out with his insurance money.if you also know the approx amount time it takes for the insurance company to payout on life insurance.

  24. LSM Insurance 06/09/2011 at 9:04 am

    Thanks for the note. Most policies have a 2 year suicide provision meaning the policy does not pay the death benenfit if the insured commits suicide in the first 2 policy years.

    As for the time it takes to pay out a claim it depends on if the insurance company thinks the application questions were answered incorrectly – if they think there may be fraud they will take time to investigate the claim – the proceeds when paid out are out directly to the named benenficary and not the creditors.

  25. Tanya 08/14/2011 at 12:09 am

    I just took a mortgage for $280K.
    I was thinking of taking a whole life ins, but the payments are too high for me.

    If I’ll take for now a term ins only to cover the mortgage,
    1) what sum should i take the $280K or including the interest (+$100K)?
    2) I’m now 33 healthy, non smoker, at what age is the best in terms of a premium to convert this term ins to a permanent one?

    Thanks a lot

  26. LSM Insurance 08/14/2011 at 8:11 am

    Thanks Tanya. It is hard to tell you the amount of insurance you need without doing a proper life insurance needs analysis. See our calculator link to

    The younger you are the lower the cost in terms of conversion this is really a function of your budget.

  27. Tod 08/26/2011 at 10:54 am

    This is a great site. I have two questions I am hoping to get your advice on. First, do some insurers have a better record of paying death benefits versus denying benefits? Are there public statistics on this?
    Secondly, do most insurers make their standard clauses (things like exclusions, etc) in their insurance agreements available to the public so we can review them while choosing an insurers?


  28. LSM Insurance 08/26/2011 at 11:47 am

    Hi Tod,

    Thanks for the kind words. Unfortunately we are not aware of any stats available publicly on insurance company claims paying records.

    Having said that a more experienced broker will likely have more insights into an insurance companies post claim underwriting practices.

    Most insurance companies due have standard exclusions like suicide in the first 2 years but individual exclusions can verify from company to company i.e. like travel exclusions based on the insurance companies underwriting guidelines.

  29. Harry 10/06/2011 at 12:01 am

    This is a agreat site. I did not find this much detailed explaination on any oyher insurance web site.I really apprecite your efforts and hard work.My qoustion is I have two life insurance policies with two different companies. I want to cancel one policy. One policy is three years older and second is five years older. Which policy should I cancel ?

  30. LSM Insurance 10/06/2011 at 8:23 am

    Thanks for the kind words.

    Harry it is difficult to properly answer your question without seeing the policies or reviewing you financial situation.

    If one of the policies is a Permanent policy be careful of any early surrender charges – one option may be to reduce rather than cancel the coverage.

  31. Kingstonmom 12/09/2011 at 7:52 am

    Hello. My husband and I are applying for life insurance. I was asked by the screener about my parent’s health and ages. I said their health was good. I was asked no more questions. I finished the call and I remembered that my Mom has stable Parkinson’s disease. I was not specifically asked, so I did not mention it and its answer diagnosis so I forgot. Should I call the agent back? I don’t want to hide anything I just honestly forgot but now I don’t know what to do.

  32. LSM Insurance 12/09/2011 at 9:08 am

    I would ask for a copy of the application and make sure the questions were answered truthfully. If you add information to your answers make sure the insurance company acknowledges this in writing.

  33. Rebecca 07/25/2012 at 6:53 pm

    I just had a baby & am looking for a small policy of about $50,000 to cover funeral & daycare costs for my husband just in case something happens to me.

    My husband has a policy through his professional association with Manulife that has great rates. We applied for this small amount for me with them but withdrew it as they have asked for detials I simply can’t remember or track down & I don’t want to risk it being denied or worse…not paid out due to failure to disclose details if something were to happen to me.

    I have a history of depression stemming from puberty & I’m 32 now. They are looking for details such as: the date of diagnosis (over 20 years ago), every prescription & dosage I’ve ever had, every doctor I’ve ever seen (I’ve moved many times & had many doctors), the date ranges of every “episode” with treatment & conclusions, etc, etc, etc. I have even gone so far as to call as many doctors as I can remember to get copies of my files but most only keep records for 6 years before they are shredded. Do you know of a provider that won’t have me jump through all these hoops? I am a healthy 32 year old, non-smoking woman leading a very low-risk lifestyle.

  34. LSM Insurance 07/26/2012 at 9:42 am

    Thanks for the note. The severity of depression, type of medication and any hospitalization could all impact the premiums on a plan. We will send you a separate email now.

  35. Al 07/30/2012 at 12:20 pm

    You manage a very good info site. Can a insurance co.,if a
    senior of say 65+ who has paid into a policy for many years dies of
    apparently normal causes, request your Drs. Files,info or request a
    autopsy ? Since taking out the policy heart ,diabetes and other
    conditions have developed?

  36. Andy Suboch 07/30/2012 at 12:21 pm

    This is further to your email of below.

    I am a person duly licensed to practice law in the Province of Ontario. I have been asked to respond to your enquiry.

    What the insurance company can or can’t do is governed by the terms of the contract of insurance. As I haven’t had an opportunity to review the relevant policy of insurance I can’t comment on what the insurance company is entitled to get in your particular case. Generally speaking, they usually have some right to investigate the claim including getting copies of the treating and/or family doctor’s notes and records, for a reasonable period of time prior to the death, usually at their expense. I would be surprised if the terms of the policy also allowed the insurer to require and/or force an autopsy. Again, until I review the relevant policy of insurance, I cannot comment as to whether an autopsy would be permitted the policy of insurance to which you refer.

    If conditions developed AFTER the policy was purchased, that SHOULD NOT be a legitimate basis to deny a claim.

    If you would like a free consultation, please call Sarah 416-815-1331 x234 to arrange for same.


    Andy Suboch

  37. Brian J 08/17/2012 at 6:36 pm

    If I purchase multiple Life insurance policies,Ex. from employer, my own privately purchase insurance,and lets say a banks insurance like Scotia life. will all companies pay out if there requirements are met or does one cancel the other

  38. LSM Insurance 08/18/2012 at 11:36 am

    If all applications were completely accurately and the policies are in good standing they should pay out. Thanks,

  39. shibani 08/22/2012 at 11:54 am

    I just wanted to know that is there any life insurance available for a person with bipolar disease.

  40. LSM Insurance 08/22/2012 at 12:24 pm

    Yes we have a variety of Simplified Issue plan that you would qualify for (no medical tests and a short series of health questions.

    Many of these plans do not have a depression related question and some also have an immediate death benefit i.e. no waiting period.

  41. Mich 10/24/2012 at 4:04 pm

    I am a 32 year old female in overall good health with no diseases, no mental health, and no addiction problems. I do have mild high blood pressure. Do I have to disclose the high blood pressure? Will this affect my quote greatly?

  42. LSM Insurance 10/24/2012 at 4:55 pm

    Thanks for the note. You should qualify for life insurance if you high blood pressure under control. But it could impact your ability for preferred rates.

    If your application ask a question about high blood pressure you have to answer truthful. Doing otherwise could impact the policies ability to pay out at the time of claim.

  43. mike 11/17/2012 at 1:15 pm

    Hello im 30 years old and im trying to apply for life insurance never had any sickness im a non smoker but last year i had a minor std would it make any difference or should i put it on my application or not? thank you.

  44. LSM Insurance 11/17/2012 at 5:00 pm

    Thanks for the note Mike.

    If the application asks the question. You should answer the question truthfully.

  45. relly 11/27/2012 at 3:01 pm

    what if i fail to make payments is their any grace period or consideration?

  46. LSM Insurance 11/27/2012 at 4:26 pm

    Most life insurance companies have a 31 day grace period in the event you miss a premium. The period could be longer with certain carriers. Also if your policy has a cash value the premiums could be deducted from the cash value in the form of a policy loan. The loan amount is deducted from the death benefit.

  47. Jeremy 12/16/2012 at 9:54 am

    Hi im jeremy , I’m …. my dad just died, i did not live with my dad, but i have one brother , he lived with my dad, i just came down for the funneral and my brother said that my dad has a life insurance and pension at work, and when he gets all the stuff done and the money comes i will be getting half of the money which i deserve….but i love my bro i just dont trusdt him , should i be doing anything to ensure i get half the money or just leave it to my brother and hope i get what is fair half and half , cuz my father has no wife just me and my bro , thx if your able to help

  48. LSM Insurance 12/16/2012 at 10:46 am

    Hi Jeremy, Sorry to hear about your father. Once the policy claim is settled – the proceeds will be paid out in accordance with beneficiary stated in the policy. The beneficiary designation can not be changed after the insured passes away.

  49. james barnes 12/19/2012 at 4:53 am

    i had a friend recently committed suicide. ive read that most policies arent paid out to peoples loved ones that committed suicide, is there any chance that his family will get paid out, by means of a special clause involving possible suicide? She says they paid extra in case he committed suicide.
    Just running it by anyone that may have information about this

    a very sad and confused person

  50. syed 12/19/2012 at 6:46 pm

    Thanks for your note. Most policies have a two year suicide provision meaning the death benefit is not paid out if the insured commits suicide in the first 2 years.

  51. Bailey 01/01/2013 at 2:53 am

    Your site is a most helpful resource! I have a friend who was in the hospital following a very serious failed suicide attempt which was done in an attempt to gain the benefits for her dependent father (they are deeply in debt). She has had a fixed premium policy since 2004 and it expires in 2016. Does the failed attempt mean they will discontinue her insurance? Does the two-year exclusion begin again? Thanks for any help.

  52. syed 01/03/2013 at 9:26 pm

    Hi Bailey,

    Thanks for the kind words. I’m sorry to hear about your friend’s situation.

    They would have to contact the insurance company directly to get more information on their policy. I have sent you an email with links to each carrier.

    Hopefully that helps out. Thanks

  53. Patricia 01/28/2013 at 3:23 pm

    I wish to name my brother or my neice as beneficiary on my insce..

    If I have bills to pay out of my estate, is the Life Insurance
    included or will they get the death benefit from the insurance?

  54. LSM Insurance 01/28/2013 at 3:35 pm

    Hi Patricia,

    If your brother is named as a beneficiary on your life insurance than the death benefit proceeds would not be included in your estate.

  55. Patricia 01/28/2013 at 3:56 pm

    Thanks so much. If my brother as ben. dies before me, and I do not name another -will my estate go to the Public Trustee?

  56. LSM Insurance 01/28/2013 at 4:04 pm

    If the primary beneficiary is not alive at the time of death and a contingent beneficiary is not named. The proceeds will go to your estate.

  57. Cath 03/26/2013 at 1:10 am

    Hi there,
    What a wealth of information you provide, thank you. I am not sure if I missed it or not, but…
    my uncle bought life insurance in 1991 while he was in Canada. In 2009, they located to the philippines and is still residing there. If he were to pass away in the Philippines, will his insurance that was signed in Canada pay out ?

  58. LSM Insurance 03/26/2013 at 9:41 am

    Thanks for the kind words. The policy will pay out assuming the initial application was answered truthfully and policy does not have any exclusions.

  59. Kate 05/19/2013 at 2:01 am

    My husband and I are in the process of buying joint term insurance. My husband was diagnosed for a certain infection two years ago. He had treatment and since that time he feels well. Before treatment the doctor had told him to come back after treatment and test again for the infection. My husband never did as he was busy and never had a breakout of the infection again. In the interview my husband mentioned about this diagnosis and treatment, but he didn’t say that he didn’t do the test for that infection again. So now we are wondering if we can and should disclose it? Or it doesn’t matter?
    Another question is if I die,( we have joint insurance) does the fact that my husband didn’t mention about the test he had to do in the application will affect his claim? If I die, insurance company will probably be checking if I stated everything correctly in the application or not?
    Thank you!

  60. LSM Insurance 05/19/2013 at 8:07 am

    Thanks for the note. You have to answer the application questions truthfully. Without seeing the initial question its difficult to comment on hiow your husband answered.

    Subsequent health issues after the initial policy was issued and accepted do not have to be disclosed to the insurance company. An example if you were approved for insurance and two years later become diabetic this does not have to be disclosed

  61. Kate 05/19/2013 at 10:50 am


    When a couple have joint insurance and one spouse dies, the surviving spouse makes a claim, does the insurance company check if the answers in aplication of both spouses were thrue? Or they check only the application of a spouse that died?
    Thank you!

  62. LSM Insurance 05/19/2013 at 7:46 pm

    Normally the insurance company would only review the claim of the spouse who passed away.

  63. VictorM 06/03/2013 at 1:10 am

    Yes I am going to buying Term Life Insurance. I am 47 years old and am concerned that the insurer may refuse to payout. If a death is ruled not suicide or accidental then can the insurance company still refuse to pay out ?

  64. LSM Insurance 06/03/2013 at 6:56 am

    Hi Victor,

    If the application questions are answered truthfully and the policy does not contain specific exclusion. The benefit will pay out.

  65. Carmen 06/19/2013 at 3:41 pm

    Great source for information! I understand the common exclusions for a policy being paid out as mentioned in your article, suicide within the first 2 years of a policy, the incontestability period, death during an act of war, death while in an “excluded” country, etc. Is there any reason why death due to cirrhosis from alcoholic liver disease would result in a denied claim?

  66. LSM Insurance 06/19/2013 at 4:02 pm

    Thanks for the note. Some No Medical Life Insurance policies have an exclusion for non accidental in the first 2 policy years. These policies ask few or no health questions and this is ine of the safeguards the insurance company often puts in place

  67. CMD 06/25/2013 at 5:10 pm

    After the two year contestability period, you speak of cases of Fraud. What exactly is considered Fraud?

  68. LSM Insurance 06/25/2013 at 5:59 pm

    An example of fraud might be someone who was diagnosed with Cancer and answers “no” to a question asking if they have ever been diagnosed with Cancer.

  69. Harry 09/03/2013 at 5:51 pm

    Applicant does not have diabetes or any other heart related problem but applicant’s father who is alive , hale and hearty @ 70 yrs currently has had Type 2 diabetes for 8 years which is being controlled with exercise , diet and some minor meds .

    How much of an effect will this information be on the Insurance Company’s decision if the Applicant being 40 does not have any diabetes or heart related problems incl. blood pressure or cholesterol etc.

  70. LSM Insurance 09/04/2013 at 8:42 am

    Hi Harry, Family history plays more of a role in the insured’s ability to obtain preferred rates. Based on on this information only the applicant should still be able to qualify for preferred rates.

  71. David 05/09/2014 at 8:02 pm

    If I have a plan on for years and then want to change to a different plan through someone else will scotialife give me back the premiums I’ve paid in or do they just keep that money ?

  72. LSM Insurance 05/10/2014 at 9:31 am

    Hi David. It would depend on the wording of the contract are they changing the plan or just increasing the premium. Regarding a return of premium almost all Term plans do not have a return of premium but you contact Scotialife and get a response in writing to your questions.

  73. DC 05/12/2014 at 11:17 am


    I’m looking for 20yr term insurance for both of my husband and myself. We have 2 young kids.

    An agent suggested to go with Foresters. He stated that it’s better for people with kids as it provides more benefits with the same amount of premium that other insurance companies charge.

    It sounds very good but when I google comments about this company I found that it has a lot of complains about how difficult to make death claim. Like it took unreasonably long period of time(ie. 9 months) to settle death claims. Some cases even got declined.

    I brought it up to my agent and he said he has no problem with this company so far and he pointed out that the complains that I found were all coming from US.

    I live in Canada and I didn’t find any complain from this end yet. So it a good sign but I still have concern about it.

    I want your opinion on this company. Do you have any experience with it?



  74. LSM Insurance 05/12/2014 at 12:06 pm

    Thanks for the note. There are no measurable stats which show Foresters have better or worse claims paying ratios than other companies. Are experience with them has been good

  75. Raj 01/02/2015 at 7:09 am

    Hi LSM,

    Thanks for the discussion subject.

    I have been diabetic for last six years and having medicine for diabetic using my insurance cards provided by my employers. Recently one insurance consultant approached me and some how convinced to take a critical illness insurance without medical checking and without stating i am a diabetic, and i have paid around 10 instalments. They were saying about a incontestability period of 2 years and afterward i will not be denied when i do a claim thought i have stated it wrong that i am not a diabetic? Is it right? Do this insurance companies can find my medical history from my previous consutlations using insurance cards? Should i discontinue this insurance policy?

    Thanks and Regard

  76. LSM Insurance 01/02/2015 at 2:05 pm

    Hi Raj,

    You should answer the application questions truthfully. An insurance company will not pay out in the case of fraud.

  77. scott 03/03/2015 at 2:39 pm

    is there a way to find out if there is a policy on someone who has died? My mother died unexpectedly and she hadn’t talked about it with any of us.

  78. LSM Insurance 03/03/2015 at 5:41 pm

    Hi Scott,

    I’m sorry to hear about that. You could check safety deposit boxes, past bank and employee pay slips to see if there are any life insurance papers.

    The attached insurance directory gives you a listing of the different life insurance companies in Canada and their contact details link to

  79. Wanda 03/07/2015 at 8:31 pm

    If a person refuses medical treatment for an illness , and eventually dies from that illness, can their life insurance be denied to their beneficiary ?

  80. LSM Insurance 03/08/2015 at 11:41 am

    Hi Wanda,

    That is an interesting question. You would have to check the wording of the policy. If you can`t find your policy or if its unclear in the policy wording – you could ask for a response in writing from your insurance company. In general terms if the applicant was truthful on their initial application the claim would pay out. Assuming depending on the situation around the illness, this is not deemed suicide. An insurance policy will not pay out if suicide is committed in the first two policy years.

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