The head of Sun Life’s Canadian activities wants his industry to relax the restrictions surrounding life insurance benefits in the event of suicide in order to take into account the exceptional context of certain tragedies.
“We work with the industry,” confirms the president of Sun Life Canada, Jacques Goulet, in an interview on the sidelines of a speech on Thursday before the Chamber of Commerce of Metropolitan Montreal. It’s complicated for all the players to come to the same opinion. If it doesn’t move forward at the industry level, we will consider whether we move forward on our own or not, but we would prefer to do that within the industry. »
The industry standard is to refuse to pay benefits when the insured commits suicide less than 24 months after signing their contract. In this case, the insurer would only reimburse the premiums paid.
This standard clause sometimes leads to heartbreaking situations, deplores Mr. Goulet. He recounts a “very recent” case that came to his office.
The young woman in question had signed a life insurance contract even though she had no known mental health issues. She subsequently became pregnant with a second child. After giving birth, she suffered postpartum depression which ultimately led to her suicide less than 24 months after signing the contract.
A young father, his partner was not entitled to the financial support provided for in the life insurance contract at a time of great vulnerability. “After that, we decided to change things,” explains the businessman.
The issue is complex, Mr. Goulet explains. The 24-month clause aims to avoid cases of fraud where an insured person signs a contract knowing that he is thinking of committing the irreparable. In rare cases, it happens that a person ends their life due to a mental health problem that arises after signing the contract.
Discussions are “progressing well” with other insurers. Without naming them, Mr. Goulet said that the major Canadian insurers were all participating in the discussions. He does not want to give a timetable, but mentions the possibility of reaching an agreement in 2024. “There is a lot of actuarial work behind all that, risk assessment, etc. »
If you need support, have suicidal thoughts or are worried about a loved one, contact 1-866-APPELLE (1-866-277-3553). A suicide prevention worker is available to you 24 hours a day, seven days a week.
You can also visit the website commentparlerdusuicide.com
