Critical illness insurance provides policyholders with a lump sum payment if they are diagnosed with a severe medical condition that is covered by their policy. This financial relief is intended to help individuals manage the costs associated with their illness, such as medical expenses, lost income, and other unforeseen financial burdens. However, not all claims are approved. In Canada, many policyholders find their claims denied due to various reasons, often leading to financial distress and disputes with insurers.
Understanding why claims are denied can help individuals take proactive steps to ensure their claims are processed smoothly. Below are some of the most common reasons critical illness insurance claims are denied in Canada.
1. Pre-Existing Conditions and Non-Disclosure
One of the primary reasons insurers deny claims is the existence of pre-existing medical conditions that were not disclosed at the time of application. Most policies have a pre-existing condition clause, which excludes … Continue reading
