In Memory of Patrick & Nolan

A Call to Action

There is a major problem with how Canadian group Dependent Life insurance contracts define eligible children, and it is time to come together as industry stakeholders to ensure we properly take care of young families.

It’s time to bring outdated legacy definitions up to modern standards, and to ensure that no one in the Canadian insurance industry going forward should ever need to verify the number of hours or days lived to determine if an infant death qualifies for coverage under a Dependent Life benefit. We can do better.

Background

The problem was brought to the forefront for me when a client named Sandy phoned looking for bereavement support, as her twin grandsons had tragically passed away at birth. Although the pregnancy was deemed high risk due to the twins sharing the same placenta, their parents, Sara and Zach, were optimistic as they progressed closer to their due date. Unfortunately, Sara went into early labour and the hospital confirmed a rare pregnancy condition causing severe complications. The doctors found one twin having a very faint heartbeat and the other going into kidney failure, and soon after delivery, their sons sadly passed away - Nolan within the first day and Patrick the second day.

After hearing this heartbreaking account, I asked if the parents had group insurance at their respective employers, which was the case. It was at this point where my heart sunk deep into my chest, where I directed them to check if there was a Dependent Life Insurance benefit on the plans, but also to check if the definition of an insurable child was “from live birth”, “after 24 hours” or “after 14 days”. I was concerned there was a chance an insurer might give this family more bad news. It ended up that the parents had not known about there being Dependent Life coverage, and thankfully they found that both plans included a “from live birth” definition which means that benefits were payable.

The proceeds were set aside to help with final expenses and to create an education fund for a potential future sibling. In 2022, Sara and Zach were blessed to welcome their daughter, Julia, whose education will be funded in part by her older brothers (and indirectly because their plans were set up right by their employers and their benefits advisors).

Although these policies in particular paid out, this story could have had very different outcomes:

• What if the twins were stillborn, or if the employers wanted to save a few cents on their Dependent Life rate and opted for a 14 day benefit, and both claims were declined?
• What if their employers chose a carrier with a benefit that started after 24 hours, where Patrick’s claim would be approved and Nolan’s declined by a matter of hours?
• Apart from their twins, Zach and Sara also unfortunately suffered loss through miscarriages, which were not covered.

A Call to Action

It’s time to bring these outdated legacy definitions up to modern standards, and to ensure that no one in the Canadian insurance industry going forward should ever need verify the number of hours or days lived to determine if an infant death qualifies for coverage under a Dependent Life benefit. We can do better.

In honour of Patrick and Nolan’s lives and legacy, we have created this petition for all industry stakeholders to show their support in accomplishing the following goals:

Agree to a New Industry Minimum Standard Child Definition

Set “from live birth” as the industry minimum standard definition for children under group Dependent Life contracts.

• Any new quotes for Dependent Life must include this minimum standard definition starting January 1, 2024.
• Any existing legacy contracts with anything worse than live birth (i.e. 24 hours, 14 days, or other) must be amended to the “from live birth” definition at the next policy renewal.

Offer Pre-Natal Benefits

Encourage insurers to create new Pre-Natal benefits to better support families, available for purchase above and beyond traditional Dependent Life benefits.

• A Pre-Natal benefit may offer some coverage for stillbirth after 20 weeks and provide services and support for miscarriages.
• Include coverage for family counselling and bereavement support as part of the benefit.

Please show your support by signing the petition, and sharing this with others in your network.