Disability Law Show: Alberta & BC – S1 E22

Episode Summary

What options do you have if you are denied a life insurance claim? Disability lawyers Sivan Tumarkin and Martin Willemse at Samfiru Tumarkin LLP, answer this question and more on the Disability Law Show on 980 CKNW in Vancouver, 770 CHQR in Calgary and 630 CHED in Edmonton.

Listen below to discover important information about your rights and a guide through the proper steps to take when your insurance provider cuts off your long-term disability or denies your insurance claim.

Whether you need a BC disability lawyer or disability lawyers in Alberta, Sivan and his team can get you the advice you need, and the compensation you deserve.

Listen to the Episode

Show Notes

After my husband passed away I was denied a life insurance claim and accused of fraudulently answering questions to receive coverage. What are my rights?

The insurance company’s model for life insurance and coverage, in general, seems to be to deny claims but collect as many premiums as possible. Insurers are aware that most people are unable to stand up to insurance companies and do not believe that they would be successful if they sought legal action.

LEARN MORE ABOUT INSURANCE CLAIM DENIALS
Global News Sean O’Shea talks to Florence Steele about life insurance denial

Could missing a monthly payment of a life insurance policy lead to a denial? What are the premiums like for a $12K policy?

Florence explains that they did not miss a payment as it was an automatic withdrawal from the bank. Florence and her husband did not want to take any chances and miss a payment. The premiums were about $105 a month for Florence’s husband. Florence’s own premium was less as a result of her age and own medical conditions. Martin discusses that for this particular policy the premiums each month seem to be high and the insurance company likely nit-picked the answers Florence’s husband provided to the insurance company.

Why would an insurance company decide to deny a modest life insurance policy claim?

Sivan explains that one of the reasons an insurance company would deny a claim like Florence’s is simply due to the fact that they believe people in her situation would not seek legal action. For a modest policy and coverage, many individuals would not consider legal fees worthwhile. It is important to consider this situation in the context that the insurance company must abide by their own contracts.

Does the insurance company in Florence Steele’s case have the substance to deny the life insurance claim?

It is important to remember that after applying for life insurance you apply by asking a set of medical questions. In some cases, there is testing conducted. The test results and answers are sent to the insurance company and then a decision is made whether or not to approve or deny coverage or approve by charging a higher premium. If coverage has been in place for over two years, the insurance company has to prove that the medical evidence was misrepresented or presented fraudulently in order to deny a claim. The insurance company itself has to prove that the individual has committed fraud. It is a high bar for the insurance company to prove fraud. Individuals should speak to their doctors in order to provide accurate and thorough answers to the questionnaire.