Menu

Life Insurance Policy

Types of Life Insurance Riders to Be Aware of in Canada

Types of Life Insurance Riders to Be Aware of in Canada

, , ,

For many Canadians life insurance is an essential financial product that protects your loved ones from the financial impact caused in the event of your untimely death. 

Life is brittle and no one knows when it is their time to leave this world behind. For many, it is not death that they fear but the impact that their death can have on loved ones and dependents. 

In a recent survey, conducted by PolicyMe, it was estimated that nearly 22 million Canadians had some form of life insurance policy (more than half of the Canadian population). The survey also found that 77% of families with dependents had life insurance.

The reason why life insurance is so popular isn’t just because it offers peace of mind, but also because it offers considerable tax benefits and can be customized to fit your unique needs, financial goals, and succession planning objectives. 

In this article, we will learn about how you can customize a life insurance policy to suit your specific needs using add-ons or riders as they are referred to in the industry. 

Knowing what insurance riders are available to you and how they can impact your policy and premium rates can help you make the most informed decision possible when choosing a life insurance policy either individually, through your employer or for your business.

What Are Insurance Riders? How Do They Work?

An insurance rider is an additional insurance policy that can be tacked on to a standard life insurance policy. You would add riders to your policy in situations where you feel that you need coverage for something specific, or you want to tweak the coverage terms either by extending what is covered by the policy or adding more flexibility to existing terms and conditions.

The best time to add riders to your life insurance policy is during the time of purchase. This is because some riders can’t be added on to a policy once it comes into effect. 

The process of adding insurance riders to an existing policy can also be a long and arduous one. Your best bet is to understand what type of insurance riders are available and whether they pertain to you or not. The best way to do this would be to consult with life insurance experts, however, before you do here are some basic types of riders that you should be aware of.  

The Various Types Of Life Insurance Riders You Need To Be Aware Of

Many types of insurance riders can be tacked on to a life insurance policy. However, certain types of insurance riders are a lot more common than others as they tend to pertain to a wider audience than others. 

Let’s take a look at a few of the more popular life insurance riders that may or may not pertain to your current situation. 

Critical Illness Rider

A life insurance policy pays out a death benefit in the event of your death, but what if you get diagnosed with a critical illness that takes away your ability to work or make a living? A critical illness rider can help cover such a situation as you will be paid out a lump sum payment if you are diagnosed with a critical illness that is covered by your policy.

Guaranteed Insurability Rider

The benefit of a guaranteed insurability rider is that it allows you to buy additional coverage without having to undergo the process of underwriting at various dates in the future. 

This is a great rider to add if you are buying a life insurance policy while you are still relatively young because as you grow older you may very well require additional coverage for your spouse, children, etc. 

By adding this rider you won’t need to prove insurability, so no need for a medical exam or another underwriting process. 

Accidental Death Benefit Rider

What if you are in an accident and fortunately it wasn’t fatal but you are now disabled due to losing a limb or a function (such as sight or hearing)? A standard life insurance policy wouldn’t pay out any benefits in this case. However, by adding on an accidental death benefit rider, if you sustain a life-altering injury you will be entitled to a payout. 

This type of rider is beneficial for individuals who work dangerous jobs or live a risky lifestyle.

Long-Term Care Rider

This type of insurance rider allows you to receive a portion of your death benefit during your lifetime. The payout can be used to pay for expenses for long-term care such as the cost of hiring a private caregiver, the cost of nursing homes, and other expenses associated with aging. In the event of your death, your beneficiaries will however receive a smaller death benefit depending on how much money has already been taken out. 

Waiver of Premium Rider

This type of rider eliminates the need for premium payments in the event of a disability or injury sustained during an accident. The waiver applies to the base life insurance policy as well as any other riders that you have added on. If opting for such a rider make sure that you clearly understand what the waiver is applicable for as they can be quite restrictive. 

Choosing The Right Type Of Insurance Rider For Your Policy

There are many other types of insurance riders as well, such as a term rider that adds an extra term of life coverage to your base policy or a child or spousal rider that provides coverage life insurance for you, your spouse, and your children.

Some Canadian families can also choose to add a parent protection rider that offers coverage to their parents as well as their spouse and children.

Another type of popular rider is the return of premiums where you can set up the policy in a way that if you outlive the policy term you will be entitled to all the premium payments you have paid into the policy.

Riders can also help customize the terms of the death benefit. A family income benefit rider, for example, can ensure your family receives monthly income rather than a lump sum payment in the event of your death. 

Thus, choosing the right type of insurance rider depends on your needs and priorities. Remember, each rider that you add to your base policy will likely increase the amount of monthly premium that you will have to pay. It is important to find a balance between what coverage you need and what you can afford.

When Considering Opting For Life Insurance Riders Always Consult With The Experts!

Even though you now have a basic understanding of what insurance riders are and their various types it is essential that you still speak to an experienced insurance broker before opting for any type of life insurance policy. 

Remember, it is harder to add insurance riders to a policy that is already in effect so it is highly recommended that you think long and hard about what type of insurance policy is best suited to your unique needs before pulling the trigger.

Those of you looking for life insurance experts in Nova Scotia pick up the phone and call McIver Insurance today at 1-902-220-3279 or email [email protected]. 

We are proudly Halifax’s most trusted insurance brokerage firm and specialize in all types of insurance services.

Retirement Planning The Role of Annuities and Life Insurance (1)

How Long Does The Life Insurance Claims Process Usually Take?

, ,

Life insurance is an essential financial tool that pays out a sum of money or death benefit to your beneficiaries to help cover their expenses and compensate for lost future income. Over 70% of Canadians have some type of life insurance policy to help provide peace of mind and financial security for loved ones. 

It can take anywhere from 10 to 60 days to receive a life insurance payout after a claim has been submitted. The claim processing time varies depending on how and when the insured died and whether the right documentation has been submitted. If everything checks out a claim can often be issued in under two weeks, however, if there are complications the claim process can take two months or even more.

So, what can you do to ensure there are no delays or issues when your beneficiaries claim life insurance after your passing? To get the answer to this question and a lot more, read on!

Understanding Life Insurance Claims

What are life insurance claims? In layman’s terms, a life insurance claim is a process whereby a designated beneficiary on a life insurance policy formally requests an insurance provider to pay out the benefits attributed to them as stated in the policy.

There is no time period associated with filing a claim. A beneficiary can file for a claim even years after the insured’s death. As long as the insured dies while the policy is active the beneficiary will receive the payout regardless of when they apply for it. However, it goes without saying that the sooner you file for a claim the sooner you will receive the benefit payout. 

How To Start A Life Insurance Claim Process?

Claiming a life insurance benefit is a fairly straightforward process in Canada. Here are the steps involved when filing for a life insurance claim:

  1. Provide proof that the insured is deceased. This is usually presented in the form of a death certificate that identifies the exact time, date, location, and cause of death. In certain cases, more proof may be warranted in which case you may also have to provide one additional document for proof. This can include an obituary, funeral home bill, funeral director’s statement, coroner’s report, or police or medical records.
  2. Fill out the claim forms and attach the original life insurance policy document if you have it on hand. When filling out the forms also make sure the information you provide is accurate and relevant. This can help speed up the claim process. (If you can’t find the original document you can request the insurance provider to send you a digital copy instead)
  3. Choose how you would like the death benefits to be paid out. You can either choose to receive a lump-sum payment or opt to be paid out in the form of an annuity. In the case of an annuity, beneficiaries are paid annual payments for a predetermined number of years or life depending on the terms of the policy and the insurance provider.
  4. Submit all documentation and claim forms. Wait for the insurance provider to review and cross-check the information and fact-check the claim request. This can take anywhere from two weeks to two months.
  5. Once the claim is approved the beneficiary will receive the payout according to the payment method they had specified. However, if the claim is denied the beneficiary can write an appeal letter, speak directly with a designated representative, or consider legal recourse if they feel the denial was unjust or unwarranted. 

How Long Does The Life Insurance Claim Process Take?

The life insurance claim process can take several weeks. It can take a few days for a beneficiary to fill out the necessary claim forms and gather the relevant documentation needed for submission. After submission, the insurance provider can take a further two weeks or more to cross-reference everything and issue the payout. 

In most cases then, it can take a minimum of three weeks to a month for you to be paid out and this is why it is essential to initiate claim proceedings as soon as possible. 

What Factors Can Delay The Claims Process?

Several factors can delay the claim process which can make things quite stressful and financially tasking on beneficiaries. Here are some of the most common reasons for delays that can be easily avoided:

  • The submission of incorrect or vague information and wrong documentation is the most common reason for delays. This can be easily avoided by double-checking all the paperwork and ensuring that the directions provided by the insurance company are followed to the tee.
  • Any missing paperwork can also cause delays. If even one form or document is missing it can cause delays in the claim process. 
  • If the death has occurred during the contestability period there is likely going to be a delay in the beneficiary receiving a payout. The contestability period is a two-year window from the date of issue of a life insurance policy whereby an insurance provider can legally withhold the payout to a beneficiary until it has done its due diligence confirming there is no form of misrepresentation or insurance fraud involved. 
  • Another reason why an insurance claim can be delayed is based on how the insured has died. If the insured was murdered, or died while engaged in any form of illegal activity the insurance provider can withhold the death benefit payment until a thorough investigation is conducted.

What If A Claim Is Denied?

If a claim is denied, the insurance provider has to legally provide a written explanation underlying the reasons behind the denial. If the beneficiary feels that the reasons aren’t valid, unjustified, and unwarranted they can appeal the decision and even take the insurance provider to court.  

The Importance Of Consulting With Insurance Experts!

When filing for a life insurance claim it is always best to consult with an insurance agent, brokerage company, or the insurance provider themselves as they can assist you in ensuring that you follow the steps required to receive your insurance benefit without any delays or setbacks.

At McIver Insurance we specialize in all types of life insurance policies and are the most trusted insurance brokerage firm in the Atlantic Provinces. To learn more about life insurance or its claim process feel free to call us now at 1-902-220-3279 or email [email protected]

Retirement Planning The Role of Annuities and Life Insurance

Retirement Planning: The Role of Annuities and Life Insurance

, ,

The best years of our lives often come during retirement, as you can finally do all the things you wanted but couldn’t, as you were too busy working and saving up for the future. Those who successfully plan for retirement can live out the remainder of their lives in comfort and luxury without worrying about their financial well-being or working to make a living.

Many consider pensions as the go-to instrument for retirement planning. While pensions are important it is not the only tool in your arsenal to ensure guaranteed benefits upon retirement. Annuities and life insurance can also play an essential role in ensuring your retirement plan is fool-proof and your chosen retirement savings accounts provide you with the funds you need to live out the golden years of your life in the lifestyle of your choosing. 

If you are wondering how annuities and life insurance can help you with retirement planning and are wanting to learn more about these financial products, you have come to the right place. In this guide, we will learn about the importance of life insurance and annuities, their differences and types, and the benefits they offer! 

What Does Retirement Planning Entail?

A retirement plan is essentially a blueprint that helps you prepare for your future; today! Retirement planning entails setting up clearly defined retirement goals and determining what actions, decisions, and sacrifices must be made to achieve those goals. 

As such, retirement planning can entail a lot of things, including identifying potential and future income sources, estimating current and future expenses and cash flow, figuring out what saving plans are best suited to your objectives and goals, and how to best manage investments and assets to grow retirement savings.

It is always advisable to consult with an expert financial advisor when setting up a retirement plan as there are many intricacies to retirement planning that only an expert can help shed light on!

What Role Do Annuities & Life Insurance Play In Retirement Planning?

Life insurance is a legally binding contract between you and an insurance provider that guarantees a cash benefit paid to your appointed beneficiaries at the time of death. 

On the other hand, annuities are also a contract between you and an insurance provider whereby you make a series of installments or a lump sum payment and can get a series of payments over a fixed period (usually upon retirement) that can last until your lifetime. They can also include a death benefit if your annuity has a guaranteed period that hasn’t expired upon your death or you have invested in a deferred annuity.

Here is the sum of the key differences between life insurance and annuities.

Differences Between Annuities & Life Insurance
Life InsuranceAnnuities
Two types; term or whole life insuranceFour types; fixed, variable, immediate, and deferred
Pays out at the time of deathPays out over your lifetime
Cash benefits paid out to beneficiariesOffers guaranteed lifetime income

While both annuities and life insurance are essential tools for retirement planning they both work differently and play different roles in retirement planning helping achieve contrasting retirement objectives. 

While life insurance is designed to provide income to loved ones upon your demise, annuities are a fixed-income financial product designed to guarantee a steady stream of income during your retirement years.  

What Are The Different Types Of Annuities?

To better understand the different roles of annuities in retirement planning we must first look at the different types of annuities and their purpose.

Fixed Annuity

One of the most common types and the least risky of the annuities available in the market, a fixed annuity is a financial product that allows you to earn a fixed interest rate on your annuity investments. As a rule of thumb, the longer your investment term the higher the rate of interest will be.

Variable Annuity

This is a riskier but potentially also more rewarding type of annuity. In a variable annuity, your payments are invested in other financial products such as stocks, bonds, and mutual funds. As such, if your investments do well you stand to gain a lot more than fixed annuities but if they don’t perform well you also stand to lose money on your annuity investments. 

Immediate Annuity

This form of annuity involves paying a lump sum payment upfront to get regular payments in the form of paychecks moving forward or starting from a specified date. The amount and frequency of these ‘paychecks’ vary depending on many factors such as age, gender, duration of term, current inflation and interest rates, etc. An immediate annuity’s main purpose is to protect an individual’s savings against outliving their income.

Deferred Income Annuity

A deferred income annuity allows an individual to save and grow tax-deferred retirement income. The annuity can either be paid out in lump sum or lifetime income payments and its major benefit is that the initial investment made isn’t taxable and neither are your investment gains until you decide to withdraw. 

The Benefits Of Annuities & Life Insurance For Retirement Planning

There are plenty of benefits to annuities and life insurance when it comes to retirement planning. Here are some of the most common benefits.

  1. Helps Protect Savings Against Inflation & Market Risks
  2. Safeguards your loved ones against financial loss
  3. Offer tax-deferred investment growth
  4. Lifetime income benefits and death benefits to beneficiaries
  5. Varying tax benefits depending on the type of annuity or life insurance you opt for

Retirement Planning Made Easy With McIver Insurance!

Thinking about retirement from an early age is the key to attaining financial independence and securing a sound and healthy financial future. When it comes to life insurance for Nova Scotians there is only one company you should look for consultation – McIver Insurance!

We are proudly Nova Scotia’s most trusted life insurance brokerage company that has helped thousands of Nova Scotians get insured and live a fearless tomorrow!

How Life Events Affect Your Insurance Needs

How Life Events Affect Your Insurance Needs

, ,

As we go through the different stages of life, from infancy to adulthood, our wants and needs change and so do our financial needs and responsibilities. During our transition to adulthood, we tend to only think about ourselves and the present whereas as we age our goals and thoughts change. What becomes more valuable is our legacy and the thought of keeping our family and loved ones safe and financially secure even after our passing.

This is why life insurance is such a widely used tool for both financial and retirement planning, not just in Canada but around the world. A comprehensive life insurance policy can help protect individuals and loved ones if the unexpected occurs and give people peace of mind and a sense of security.

However, not all life insurance policies are the same. So, to find the right policy for you, in this guide, we will take a look at what life events can affect your insurance needs and the different types of policies available to ensure those needs are met!

What Are Some Major Life Events That Can Impact Your Insurance Needs?

Many major life events can impact your insurance needs both in the short and long term. As you transition from one stage of life to another your insurance needs may require reevaluating, especially in the cases of the following:

  1. Getting Married

Getting married begins for many the next chapter of life. It is a bond of love and a promise to build a future as partners. As such, once a person gets married both partners must have a life insurance policy so that in case something unexpected were to happen to either one of them the other isn’t financially burdened with outstanding debt, burial/funeral costs, and other major expenses. 

  1. Having A Child

Having a child is a blessing and a responsibility as you must protect and financially provide for them. As such, as soon as you have a child you should seek out a life insurance policy, whether that be a term life insurance policy or a whole life insurance policy to help protect your children financially should you or your spouse pass away.

  1. Buying An Asset (Vehicle, Home, Etc.)

When you buy your first home or even a rental property, it is always important to consider mortgage insurance, especially if you don’t have enough money to pay the 20% down payment on a new home. Having mortgage insurance can increase the chances of you getting approved for a mortgage as this type of policy helps minimize the risk for lenders.

In the case of buying a vehicle, you will also need vehicle insurance whether that be third-party insurance or full vehicle coverage as per Canadian law. 

  1. Starting A Business

In a rapidly changing world, many consider entrepreneurship the key to accumulating wealth and being successful. However, starting your own business isn’t an easy ordeal as it requires a lot of hard work and plenty of sacrifice. It also means you are no longer going to be covered by your previous employer’s life insurance or group insurance policy and will have to take responsibility for your own insurance needs. 

This would require purchasing life insurance, health insurance, liability insurance, disability insurance, and more for comprehensive coverage which can be quite challenging. The best way to figure out a coverage policy when starting your own business is to consult with an insurance broker or expert who can help you navigate through the various options and find you a policy best suited to your new insurance needs.

  1. Changing Jobs

When transitioning from one job to another, or considering a job offer, it is important to look at not just how much more you will be getting paid in terms of salary or hourly pay but also the perks and benefits that your current job offers versus your new job. 

Some Canadian companies offer comprehensive life insurance policies that cover health, life, vision, dental, and disability insurance while others may only offer health and life insurance. You must ask about what your policy entails and if there are gaps in the coverage how much it would cost to fill those gaps. 

  1. Retiring

Upon retiring many people think or assume that they no longer need life insurance. However, if you still have outstanding debt, plan on continuing to work, or have a spouse or child that is disabled it is vital that you consider future coverage.

  1. Divorce

Divorce is hardly ever smooth. In most cases, it is messy and emotionally and physically taxing. You are not just splitting up assets and belongings but also splitting up your lives and the lives of your loved ones. It is no surprise then that in the unfortunate event of a divorce, your insurance needs will also drastically change and you will need to revise or seek out new insurance policies to protect your children and yourself.

What Are The Different Types of Life Insurance Policies?

Based on the life events you are currently passing through here are the different types of life insurance policies that can cater to your changing insurance needs.

Term Life Insurance

The least expensive of all life insurance products, term life insurance is designed to offer more flexibility and can be purchased for a 10, 20, or 30-year term. 

Permanent Life Insurance

This type of policy lasts the entire lifetime of an insured person for as long as the premium is paid. It has a higher cost but offers lifetime coverage, flexible payments, and the opportunity to build cash value.

Variable & Universal Life Insurance

Permanent life insurance can be further broken down into variable vs. universal or whole life insurance. The main difference between the two policies is that whole life insurance offers a guaranteed death benefit but slower cash value growth whereas a variable life insurance policy offers flexible premiums, flexible death benefits, and greater potential for cash value growth. 

The Best Life Insurance Policies For Nova Scotians – McIver Insurance!

With the right type of life insurance policy and provider, you can ensure that your loved ones are well taken care of if anything unfortunate were to happen to you, giving you peace of mind and allowing you to live more fearlessly. 

If certain life events have changed your insurance needs, consult with McIver Insurance! When it comes to life insurance companies in Halifax no one can beat our level of professionalism, experience, and pedigree.  

Call now at 1-902-220-3279 or email [email protected].

Does Life Insurance Pay For Suicidal Death In Canada

Does Life Insurance Pay For Suicidal Death In Canada?

,

Canadians are looking deeper into specific aspects of life insurance due to volatile international economic conditions. Every person wants to secure their monthly budget and leave behind a sense of financial security for their loved ones. 

Canadians purchase life insurance to leave behind funds and resources for their loved ones in the event of their demise. But what happens if a life insurance policyholder dies due to suicide? This is a question that many Canadians may have when considering different types of life insurance products and the cost of these products. It is important to ask questions and understand the suicide clause in a life insurance policy, as this will affect the death benefit payout in such cases. In this blog, we will cover everything you need to keep in mind as it relates to life insurers, the application process, claims, risk, and important factors applicants need to take notice of.

What Is Life Insurance?

Life insurance is a contract between an insurance provider and a policyholder. The insurer agrees to pay an agreed amount of compensation, known as the death benefit, to the policyholder’s beneficiaries in the event of certain conditions within a given duration. The precondition is the policyholder’s death, and the time period is the validity of the life insurance policy. In return, the policyholder agrees to pay premiums to the insurers to ensure the legitimacy of the life insurance benefits contract.

There are different types of life insurance policies offered by different insurance companies, and the policyholder can choose a plan that best fits their needs and circumstances.

Life insurance covers many different sections or articles in the contract, and each section is a condition that both parties must agree on for the life insurance contract. Some articles of life insurance contracts include coverage amount, beneficiary names, type of policy, duration of the policy, conditions for repayment of loans, and coverage for funeral expenses. The policyholder provides the answer to some of these articles in the contract. The insurance company establishes the terms and conditions of the life insurance contract.

The insurer has a legal obligation to fulfill the life insurance contract provided that the policyholder continues to pay the current premiums. A whole life insurance policy is valid for as long as the policyholder is alive. Beneficiaries of a whole life insurance policy get compensation, the death benefit, whenever the policyholder passes away as long as all the premium payments are up-to-date.

Suicide In Canada

Suicides are the second leading cause of death for people between the ages of 15 and 34 and the ninth leading cause of death overall in Canada. Every year about 4,000 people die as a result of suicide in Canada. Approximately 11 people die of suicide every day in Canada. According to the statistics, men in Canada are more likely to die of suicide in comparison to women.

The Criminal Code in Canada introduced in 1892 mentioned that suicide and assisted suicide are criminal offences. In 1972 suicide was decriminalized, but according to Section 241(b),  assisted suicide is still illegal. Anyone found guilty of helping someone take their own life is liable to up to 14 years in prison. It is a subject of debate in federal and provincial legislatures whether physician-assisted suicide is illegal for individuals who can not perform physically without assistance.

Suicide Statistics in Canada

  1. According to the Canadian Life and Health Insurance Association, over 95% of life insurance policies in Canada cover death by suicide.
  2. In 2018, suicide accounted for 11.5% of all deaths in Canada.
  3. In 2018, suicide was the second leading cause of death among Canadians aged 15-34.
  4. In 2018, the highest suicide rate in Canada was in Nunavut, at 85.2 deaths per 100,000 people.
  5. In 2018, the lowest suicide rate in Canada was in Prince Edward Island, at 8.6 deaths per 100,000 people.
  6. In 2018, the suicide rate among males in Canada was three times higher than the rate among females.
  7. In 2018, the suicide rate among Indigenous Canadians was three times higher than the rate among non-Indigenous Canadians.

The Opposing Views Between Assisted Suicide & Euthanasia

Assisted suicide is an active approach to help someone commit suicide. For example, assisted suicide is when a physician informs or provides lethal drugs to an individual who ends up killing themself. Without the physician’s information, the person would not commit suicide. The person committed suicide with the voluntary intention to do so.

Euthanasia is when family members or doctors intervene to cause the death of an individual to put an end to their suffering. The decision of the family members or doctors is the cause of the death of the person. For example, a person is in a constant state of unconsciousness undergoing permanent medical treatment because their body can not function without medical procedures. Family members or doctors intervene to discontinue the medical treatment because there is no chance of the individual recuperating.

Euthanasia would still be the case if the person is in a semi-conscious state and concedes to end the medical treatment that would prolong their life.

In both cases, the life insurance company may not pay the death benefit because it is not a natural death. The insurance company may consider the death as a suicide or an act of self-harm. Life insurance companies have suicide clauses in their policies that state that if the policyholder dies within a certain period of time after the policy was issued, the death benefit will not be paid. This is to protect the insurance company from any potential fraud or abuse of the policy.

What Is A Medically Assisted Death?

June 17, 2016, the MAID Act sets out conventional procedures and eligibility conditions for individuals seeking medically assisted suicide. The first condition is that the individual must be at least 18 years of age. The second condition is that the person must have a “grievous and irremediable medical condition” which causes “enduring physical or psychological suffering that is intolerable.” In addition, the individual should be in an “advanced state of irreversible decline” for which “natural death has become reasonably foreseeable.”

March 17, 2021, was the first time the Medical Assistance In Dying (MAID) legislation became law. The individual’s death does not need to be reasonably foreseeable for a person to seek medical assistance in dying. It also outlines specific medical and constitutional requirements that need to be met before the person can legally seek medical assistance in dying. Individuals with a mental illness can not seek medical assistance in dying.

How are suicide claims handled by life insurance companies in Canada?

In Canada, life insurance companies handle suicide claims similarly to other death claims. The beneficiary of the life insurance policy is still eligible to receive the death benefit payout, however, the process may vary depending on the specific circumstances and the terms outlined in the insurance policy.

It is important for individuals to understand the suicide clause in their life insurance policy and ask questions about any potential restrictions or exclusions. Life insurance companies typically require a police report and a death certificate as proof of death due to suicide. It is also vital to note that in some cases, a waiting period may apply for suicide claims.

Individuals need understand their options and the costs associated with different types of life insurance policies to ensure that their beneficiaries are protected in the event of their passing. Overall, life insurance companies offer the same services and options for beneficiaries in the event of a suicide claim as they do for any other death claim.

Does Life Insurance Pay For Suicidal Death In Canada?

The main factor that influences the answer to the question is the duration the life insurance policy has been in place. Life insurance providers will not compensate beneficiaries if the suicidal death takes place in the first two years of the policy. In such a case, life insurance providers return the paid premiums. After the first two years of the policy, life insurance providers treat the suicidal death like any other death and provide compensation to the beneficiaries.

Life insurance providers reserve the right to investigate a claim after the death of the policyholder. Life insurance providers have a keen eye for any misrepresentations made when purchasing the policy. Life insurance providers can deny a claim if they find that there was a misrepresentation to declare a history of mental instability or depression by the policyholder.

Insurance Payouts For A Medically Assisted Death

All life insurance providers treat medically assisted deaths in the same way. Life insurance providers provide full compensation if the policyholder dies a medically assisted death regardless of how long the policy has been in place. The key to remember is that all of the conditions of a medically assisted death must be met by the policyholder to differentiate this death from suicide.

Consult A Professional Insurance Broker

McIver Insurance can help you make sense of the exact kind of life insurance policies you need based on your situation. They understand all of the exclusionary clauses that life insurance providers can have, and strive to find a life insurance policy based on your specific requirements.

We recommend individuals seeking to purchase a new life insurance policy consult with a McIver insurance broker to fully understand how the life insurance policy plays out in their best interest. A consultation does not mean that you are obligated to make any commitments. Seeking professional advice can help you save time and money! If you are seeking a quote, we can also put you on the right path for your goals and objectives.