Creditor Proof - What does it mean to me?
Certain financial instruments (assets) created under the Ontario Insurance Act can be structured to retain a special status that exempts them from seizure by creditors of the owner of such assets. Recent Supreme Court decisions upheld this unique protective status. Financial instruments of assets that fall under this category are all Life Insurance and Annuity products. This would include RRSP, RRIF and Universal Life plans issued by Life Insurance Companies. It also includes unregistered annuity plans like GIAs, GLICs and prescribed and non prescribed annuities.
I don't have creditors!
May be not yet? On the other hand, if you have or should have professional liability insurance; or Errors & Omissions insurance; or not incorporated you are a prefect candidate for future creditors created by criminal or tort liability. Your life savings can be insulated from these unfortunate circumstances. Call for details.
Can a claim on policy be denied by the insurance company?
Yes, there are a few instances where this can happen. In the first two years of the policy date, or the date of a reinstated policy that had previously lapsed, suicide is not covered and if you omitted or misinformed information that would have caused the insurer not to have issued the policy had they know the information.
After two years, If the policy was issued on a "post claim underwriting basis", otherwise it can only be denied for fraud. An example of a fraudulent statement is improperly stipulating your smoking habit.