Life Insurance making sure family gets paid

Life Insurance making sure family gets paid

When you buy your life insurance, you naturally believe that when you die, your family will have the protection they need and that the policy will pay them the money they deserve. However, you have to make sure that you read your contract completely if you want to ensure that they have all of the financial benefits that are supposed to be coming to them.


Life insurance policies have what is known as an incontestability period. This period is a time limit that is typically two years long, and the insurance company has the right to dispute the claim if the information on the policy is wrong or misleading during that time. Thus, it is always important that you make sure you answer the questionnaires for your policy honestly. If they find something that contradicts what you claimed on the policy, they are not going to pay your family the life insurance money.

¬†After the incontestability period ends, the company doesn’t have the right to deny claims, even if there is a discrepancy in the application. Your family would still be able to receive the life insurance money. However, you shouldn’t rely on this. Filling out those applications with the correct information is the best way to make sure that you don’t have problems with the company and they don’t cancel your policy. Of course, in the case of fraud, the time limit doesn’t matter. If you try to defraud the company, they will find out and they will cancel your policy.

Another clause that you have to consider is the suicide clause, which is something that all life insurance contracts contain. If you take your own life within a specified period of time, which is usually two years, the company will not have to pay.


Something else that you have to consider is that if you change your current life insurance policy with a new one, even through the same company, you will have to go through the incontestability period and the suicide clause again.


You must also check to see the exclusion clauses in your contract. These exclusions dictate the types of death not covered under the policy. They could be for a variety of types of deaths, such as while you are engaging in dangerous recreational activities or you are killed while in military service. Some companies have exclusions for those who die while visiting certain foreign countries.


You can find some excellent Canadian life insurance companies in Ontario, but you need to make sure that you always read your contracts and policies carefully. It’s the only way to make sure your family gets paid in the event of your death.


Please feel free to contact Aman Kapur at or by phone 1-416-509-2540 to assist with the plan of your choice. Or simply click here to request a quote.

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