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There are two things in life that are a surety. One is taxes, and the other is death. Individuals while living often ponders on what may happen to their loved ones. Should this individual die. From a financial aspect. This leads them into looking at the protection that life insurance can provide. This is a major important decision that an individual is making. Yet at the same time, life insurance shoppers are often lax. In the way that they go about shopping for this type of insurance. To make a purchase as important as this one needs to get informed. If they are not the consequences can be devastating. They may themselves not be around to see the outcome. It can very well mean that the beneficiaries do not get paid the value of the insurance.

Reasons, the Life Insurance Company Will Not Pay Out


It’s not uncommon for an insurance policy not to get paid out. This is something that many beneficiaries have discovered. It put some in a bad position. Many beneficiaries assume they will receive the value of the life insurance policy. Some beneficiaries don’t have the resources or the funds to be able to challenge this. They are not able to fight the insurance company when they do not payout. There can be several reasons that are considered valid about why the insurance company will not payout.

Inaccurate information

Often individuals buying an insurance policy do not pay close attention to the questions. Such as those that are in the application. They may be less than forthcoming with the information that’s asked for. Or they may not feel that it’s relevant. For example, the application may ask if the individual is a smoker. It may be that the individual only smokes on occasion and do not consider themselves a smoker. This is their opinion which is much different from the insurance company. Any consumption of tobacco in many different forms gets classed as smoking. Or gets classed as tobacco use. There needs to be an affirmative answer when it comes to the question on the insurance policy.

High-Risk Activities

A lot of individuals get involved in many different types of hobbies and activities. To them, they may not seem to have a high risk. For the insurance companies, they may consider otherwise. These types of hobbies may get listed on the insurance application. Or, they may be asked about what type of hobbies or activities the applicants involved in. Then the insurance company will make a decision about the risk factors based on the answers. Another possibility is there may be a clause in the insurance coverage. One that says that the insured is not allowed to take part in a series of listed activities. Ones considered by the insurance company to be dangerous.

Health conditions


There are some common mistakes insurance applicants make. One is that they are not forthcoming with their health status. They may have been told that they have high cholesterol. Or, they have high blood pressure. Even if these are not treated these are part of the medical notes. The insurance company may at some point get access to these. That could be enough to make the policy invalid.


Individuals who commit suicide are making sure that the beneficiaries are not going to be able to cash in on the insurance policy. Most individuals, if they read over their life insurance policy, will see a specific clause. One that speaks about suicide and the non-payment of the policy in this event.

What Makes Life Insurance Void?

There are several other conditions that can make a life insurance void.


In most cases, the insurance company is going to want the appropriate documentation. To confirm the cause of death of the insured. One of these will be the death certificate. The beneficiary needs to check with the insurance company. About exactly which death certificate they need. Most often the funeral homes provide a copy of this. But there are times when the insurance company will not accept it. So the claim goes unpaid. The beneficiary may not be clear about exactly what they need to produce. For the proper documentation.

Policy Has Expired

It is not uncommon for beneficiaries to come across an insurance policy. Once an individual has passed away. They assume that this policy is valid. When they go to check with the insurance company, they find out that it is void. It is because of nonpayment. It is common for many individuals to hang on to expired life insurance policies. Which can be misleading for the named beneficiaries.

When Does Life Insurance Not Pay?

not pay

These are the common answers to the question when does life insurance not pay. Another common problem can be the misinterpretation when buying life insurance. There are a lot of offerings when it comes to this type of insurance. There is insurance that is now touted as no medical exam or no medical questions asked. This has worked out very well for many people. There are still some pitfalls that can be present for this type of insurance.

The no medical questions asked, for example, could have small print clauses. Or extra information that stipulates further rules about the life insurance policy. For example, the application may say no medical questions asked. Then a brochure may get sent along with the insurance application. In the brochure it may have further rules. Ones that say that the life insurance would be void if there’s any pre-medical condition. What all this means is that it is important that the insurance shopper fully understands and reads what they are signing. They have to know exactly what is in the policy. Errors can get detected. They can get rectified now while the insured is alive. This protects the beneficiary at a later date from disappointment.