Life insurance death claims, on a temporary policy - can they deny a claim?

Question

My father passed away March 29th, of a heart attack (no previous medical history). In Jan, he applied for and paid his first premium on term insurance from London Life. The sales guy did his usual medical questions, the paramed came ad did the blood work etc, and the "temporary coverage" was in place, while waiting for the ins. co. to make their decision.

The temp. coverage form has only 4 criteria listed as ways to cancel the coverage. 1. the applicant lied on the medical questions. (no) 2. The applicant cancels it (he didn't) 3. The full policy comes into effect or 90 days expire on the temp coverage (less than 30 passed) 4. London life denies coverage - but would still be ineffect for 2 days after notice given.

Based on plain english of this info, to me it reads that they have no choice but to pay. Have any insurance ppl out there had a death claim on a temporary coverage? Please help as Lon. Life is giving the impression they are looking for a loophole out of paying.

Answer 1

So sorry about your loss.  I am a Broker (not an Agent) so I can't access London Life Applications.  However, Canada Life is owned by Great West/London Life, and they generally use the same forms (more or less).

I pulled up the Canada Life Application Form to review the TIA.  Was your Dad's coverage over $5M? Or was he older than Age 71? or was this a Group Life to Individual Insurance conversion?  If so, then they can deny.

The TIA Death Benefit payout cannot be more than $1M.

But based on what you wrote, and assuming he paid the first month's premium with the Life Application,  then he should be covered.

If you have any problems, speak to your Agent.  Otherwise, contact the Canadian Life & Health Assoc. Consumer Support line at  http://www.clhia.ca/e7_2.htm