In a recent case in the U.K, a cancer victim’s family was denied their life insurance payout due to failure to disclose. http://www.dailymail.co.uk/health/article-2247055/Family-cancer-victim-refused-life-insurance-payout-didnt-disclose-PINS-AND-NEEDLES.html?ito=feeds-newsxml
While he died from cancer, it turns out that he failed to disclose two items during his application. The first was that he had ‘pins and needles’, and the second was that his doctor had advised him to reduce his drinking.
Could this happen in Canada? Absolutely. Failure to disclose information during the application can – and likely will – result in the claim being denied. Here’s a few notes from the story:
Nic’s consultant oncologist Dr Rubin Soomal, from The Ipswich Hospital, said neither alcohol, nor pins and needles were linked to his death,,,, have refused to pay out on a technicality which has nothing to do with the disease that tragically took his life.
The point? The problem that was not disclosed does not have to be related to how you died.
But medical records show he drank just 10 to 20 units of alcohol a week – below the NHS recommended weekly allowance of 21 units.
Wrongful or criminal deception intended to result in financial or personal gain.