Life Insurance Claims – Denials, Delays & Legal Help
Life insurance offers a vital safety net for Canadian families. A valid policy is supposed to provide a tax-free lump sum payment to beneficiaries when the insured person dies. That payment can help cover funeral costs, pay off debts, and support loved ones financially.
But getting the insurance payout isn’t always easy.
Insurance companies regularly delay or deny life insurance claims, even when the policy appears to be valid. If your life insurance claim was denied, or you’re dealing with frustrating delays, you don’t have to face it alone. Our experienced life insurance lawyers can review your policy, explain your rights, and help you secure the compensation your family is owed.
What Is a Life Insurance Claim?
A life insurance claim is a formal request made by the beneficiary of a life insurance policy after the insured person passes away. The claim process involves submitting documentation to the insurance company in order to receive the life insurance payout.
The money received from a life insurance claim can help cover:
Funeral and burial expenses
Mortgage or other outstanding debts
Lost household income
Daily living costs (childcare, groceries, bills)
How to Claim Life Insurance in Canada
Here are the basic steps in the life insurance claim process:
Locate the Policy: Confirm the policy number and details
Notify the Insurer: Contact the insurance company and request a claim form
Gather Documentation: You’ll typically need a death certificate, completed claim form, government-issued ID, and proof of relationship (if needed)
Submit the Claim: Send the required documents to the insurer
Wait For Review: The company will investigate and issue payment if approved
Why Are Life Insurance Claims Denied?
Insurers may deny a claim based on reasons like:
Misrepresentation: The insured may have provided inaccurate health or lifestyle info
Lapsed Policy: Premiums weren’t paid, and the policy ended
Exclusions: Some policies exclude causes like suicide (within a set time), drug use, or high-risk activity
Contestability: If the death occurred within the first two years of the policy, the insurer can investigate and cancel the payout based on any incorrect information
Disputes Over Beneficiaries
Missing Documentation
Common Life Insurance Exclusions in Canada
Many Canadians don’t realize that life insurance exclusions are buried in the fine print. Common exclusions include:
Death by suicide (typically within 2 years of policy start)
Death due to illegal activity
Death in a foreign country not reported to local authorities
Misstated age or medical history on the application
How Long Does It Take to Get a Life Insurance Payout in Canada?
In most cases, a life insurance claim is paid out within 30 to 60 days after the insurer receives all required documents. But if the claim involves an investigation, disputes, or errors in the paperwork, it could take much longer.
If your life insurance payout in Canada is taking too long, contact us for legal help.
Denied a Life Insurance Claim? Here’s What To Do
Don’t give up. That is what the insurance company wants you to do. They may also encourage you to appeal the denial. Do not go through the insurance company’s appeals process! In most cases, your appeal will be unsuccessful, and your insurer will use this tactic to run out the clock on your time limit to file a claim for full compensation.
That process almost never works – and it often delays your ability to take legal action. Instead, talk to a life insurance claims lawyer at Fishman Lawyers. We can:
Review the reason for denial
Examine your policy
Deal directly with the insurer on your behalf
File a legal claim if necessary
Do not sign anything or give up your rights without legal advice.
Why Work with Our Life Insurance Lawyers?
Life insurance policies are highly technical contracts and they require a legal expert to interpret and understand the details of the policy. These policies are complex and written in confusing ways. We can help you cut through the legal jargon and understand what the best course of action is to ensure you get your benefits.
Is Life Insurance Mandatory in Canada?
No. Life insurance is not mandatory in Canada. But many Canadians choose to buy it to protect their families financially.
Bottom Line: You Have Options After a Denied Claim
If your life insurance claim was denied, don’t panic – and don’t go through it alone.
Contact the life insurance lawyers at Fishman Lawyers (jan@fishmanlawyers.ca) today for a free consultation. We’ll explain your rights, challenge the denial, and work to recover the payout your loved ones deserve
