ISSUE 32, MAY 2013



Call (416) 488-9000
for your free copy of
Disability Benefits Denied:
What To Do When The
Insurance Company Denies
Your Disability Claim

Ethel & James

scan with your
smartphone to
be directed to
our website

IN PERSON: RBC Denies Life Insurance Claim

When Alexander Kim passed away at the age of 47 due to cancer, he left behind a wife and young daughter, but he didn’t leave them without financial protection.

Alexander, a financial analyst, was the sole breadwinner of the family. He purchased a term life insurance policy with a benefit amount of $250,000, eight months before he was diagnosed with Stage IV esophageal cancer. He died almost one year later.

His wife, Tracy, was the beneficiary of the policy. She submitted a claim for the life insurance benefit a short while after Alexander’s passing. Tracy was a bit surprised that the insurance company was withholding payment even after she supplied them with her husband’s death certificate, and though she grew frustrated with their numerous requests for information, she did her best to cooperate, hoping that they would eventually be satisfied and pay her the full benefit amount so she could take care of her daughter.

She was shocked when RBC finally responded with a letter refusing to pay out, along with a cheque in the amount of $2400, refunding the total premiums Alexander had paid for the policy.

Kim family


RBC alleged that Alexander had failed to disclose he had consulted a doctor regarding cancer in his initial application for coverage. His medical records showed that, two years before his cancer diagnosis, Alexander had visited his family doctor complaining of heartburn and difficulty swallowing. His family doctor had ordered an ultrasound but Alexander had never gotten around to visiting the ultrasound clinic.

When Alexander’s symptoms became worse two years later, after he had purchased the policy, he went back to his doctor. A second ultrasound was ordered as well as a biopsy and, this time, Alexander underwent the tests.

The results confirmed that he had cancer. According to RBC, this was a clear indication that Alexander had purchased the policy with the knowledge that he was ill.

continued on page 2