Banks and insurance

down here, we have mortgage protection insurance, in case you lose your job or cannot pay your mortgage for other reasons, like health problems, and you are unable to pay...but down here, i do not believe the banks sell any sort of health insurances.....

and too, most (if not all) insurance companies, have a 1 to 2 year limited liability for pre-existing conditions.

but i never bought mortgage protection, or any other insurance protection policies for anything......

 

With today’s media coverage more people should let the public know the truth on these scams

 

Need lawyer for this one. Add a lawsuit for legal fees + pain and suffering. I have a feeling TD will cough up.

We went through this when my dad died. Term life insurance tried to claim this wasn't a payout situation. Excuse me? Then what is? One threat of putting lawyer on them and they paid. I wonder how many people just fold when the insurance company feeds their customers a crap sandwich. When the claim is legit, you will pay. Or you can get sued and then you will really pay.

 

I had a large financial planning practice in both retail and corporate/group businesses. I loved banks; they were one of my best sources of clients... theirs.

You are exactly right. The type of insurance you are referring to is basically a type of group insurance and is not underwritten (verified) at time of application, but at time of claim. Because of that, any details that might create additional questions or disqualification are not discovered until time of claim and... surprise, no payout.

If you read the fine print in most of those types of insurance that are offered when making a purchase, getting a loan, etc., you are not the beneficiary, only the insured. The beneficiary is the business in case of loss to them. You might say, "well, that's okay if they pay off my TV/car/loan..." However, when you compare the cost to "proper" insurance, it is very expensive, especially since the so-called "loan" insurance only covers the declining balance of the debt, with no payment to you. You cannot be forced to take such insurance and any implication that you must have the insurance is against the law. That doesn't stop the high-pressure tactics though.

Although banks do engage in a lot of questionable practices, I will say that I am glad we have one of the most stable banking systems in the world. However, despite the inherent conservative nature of Canadian bankers, that is not due to the banks themselves, but the regulatory system in place. I must begrudgingly give a lot of credit to Paul Martin who resisted tremendous pressure from the banks to let them into practises the US banks were engaging in, many of which contributed to the global economic collapse of 2008 and the bankruptcy of several major financial institutions and countries.

BTW, I have handed large cheques to clients for insurance they purchased from me, including a life policy that was only in-force for a few months.

 

It is largely the same there as it is here.

 

yes, but the op said the banks up there sell health insurance..???

 

Yes and no. Lending institutions (more than just banks) are not providers or underwriters of health insurance as you are thinking of it. What they provide is a third-party, non-underwritten, group policy as an add-on to cover loans, mortgages, etc. The lending institution is the beneficiary and the person taking out the loan is the insured.