Frequently Asked Questions:
Canada Life Group Creditor Insurance
Who distributes group creditor insurance on Canada Life’s behalf?
Canada Life group creditor insurance is available through a number of Canada’s largest financial institutions, as well as some specialized distributors.
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How do people apply for group creditor insurance?
Canada Life group creditor insurance is an optional product that may be available where you obtain your loan.
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How does group creditor insurance work?
- Group creditor insurance may provide benefits such as life, disability or critical illness coverage, subject to the terms and the conditions of the certificate of insurance.
- Benefit payments are made directly to the lender and may consist of a lump sum benefit for certain types of claims (for example, paying down a loan), or for other types of claims, benefits can help make the required payments on a loan.
- Canada Life underwrites several types of creditor insurance. The products, coverage and benefits available vary by lender and by product.
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Does Canada Life ask any medical questions on the application?
The insurance is designed and priced on a group basis. This means that unlike many kinds of individual insurance, there is only limited medical underwriting, so most borrowers will qualify for coverage. The initial application for this type of coverage generally requires the borrower to answer only a few health questions. In some cases (when higher coverage amounts are applied for) a more detailed health questionnaire or other medical evidence may be required.
Health questions must be answered truthfully and completely, as failure to do so may result in coverage being void.
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Does Canada Life offer a “free look” period? What about the premiums?
Canada Life’s group creditor insurance coverage allows a minimum of 10 days for the consumer to examine their certificate of insurance after they enrol, and if they choose, to cancel it with no penalty. When coverage is cancelled during this “free look” period, 100% of the premium collected is returned to the consumer.
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Can I cancel after I enrol?
Canada Life’s group creditor policies allow a consumer to cancel coverage at any time.
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How do certificate holders know what type of claims will be paid?
Claims are adjudicated in accordance with the contract provisions that are set out in the certificate of insurance given to the borrower. The certificate contains the limitations and exclusions that apply, and should be reviewed carefully by the borrower.
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What is a “pre-existing condition” provision?
- A pre-existing condition provision is a form of exclusion from coverage. This exclusion typically provides that for a certain time after the insurance takes effect, no benefits will be payable for claims resulting from conditions that manifested themselves, or for which treatment was sought, before the insurance was taken out.
- A pre-existing condition provision helps control the risk where the insurer uses only limited medical underwriting.
- The contractual provision may differ among products. If the particular product contains a pre-existing condition exclusion, full details will be contained in the certificate of insurance provided to the borrower at the time of first enrolment in the plan. This allows individual borrowers to determine if they have any medical conditions that may be excluded from a claim.
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Can simply taking a test such as a blood pressure test or mammogram lead to a denial of claims?
- Tests that are part of a routine health check that result in no indication of a health problem will have no bearing on a claim.
- Tests may also be undertaken because of a known health issue and may be used to verify the extent of the health condition. If these tests are not disclosed by the borrower in the application, this could lead to coverage being void.
- The health question is intended to help identify borrowers who meet the health criteria to be provided with immediate coverage. It is also intended to identify borrowers who have health conditions or concerns (for example, being treated for a disease) so that they can go through more thorough underwriting.
- Health questions must be answered truthfully and completely, as failure to do so may result in coverage being void.
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I want to review or change the responses I gave on my application for insurance. Can I do this?
- If your insurance took effect within the last 24 months, and you wish to change a response to a health question, you may send a written request to Canada Life, who will review the matter on a case-by-case basis. Making such a change may result in further underwriting being required.
- If your insurance has been in effect for more than 24 months and you originally answered the health questions in the applications truthfully and completely based on your belief at the time you answered them, there is no need for you to change the answers you gave at that time.
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What is Canada Life doing to make sure that people who enrol for coverage understand what they are getting?
Distributors of Canada Life group creditor insurance are responsible for the delivery of the certificate of insurance to the borrower. The certificate of insurance contains full details of the coverage, including the limitations and exclusions on coverage that may apply, and should be reviewed carefully by the borrower.
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What should consumers do if they have questions or concerns—who can they call?
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