Quote:
Originally Posted by onetwo_threefour
^ I've heard that before Slava, that the insurance is underwritten at the time of the claim. I've not been clear on what is meant by that though. Surely, if you've been paying premiums the insurer is obligated to insure you at the time of a claim since they approved you for insurance and set premiums based on risk at the time of application. Is this a way of saying that they can deny coverage based on an intervening event such as what I sad above, like being diagnosed with cancer or diabetes? That would make such insurance potentially useless for anything other than an accidental death it would seem. It would seem borderline unethical to me to sell something like that and be able to call it insurance.
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There is a pretty good video by CBC marketplace that's popular in the industry that covers this if you have 19 minutes to watch it:
I would also like to add, from the bank policies I've seen they like to decrease your coverage as your mortgage is paid down (so that it always only covers what your outstanding mortgage is) while your premiums stay the same.
As an insurance advisor I would never sell a policy like that, not to mention try explaining that type of policy to your client yikes.