Filing a life insurance claim in Canada

The steps

Notify the insurer. A phone call or a message through their website is enough to start. You do not need the paperwork ready to make contact. If you know the policy number, have it; if you do not, your name and the deceased’s name and date of birth will usually be enough for them to locate the file.

They send claim forms. The main one is a claimant’s statement, completed by the beneficiary.

Gather the documents. Usually a death certificate or a funeral director’s statement of death, government-issued identification for the beneficiary, and sometimes the original policy document if you have it. Not having the policy document rarely stops a claim.

Submit and wait. The insurer verifies the policy was in force, confirms the beneficiary designation, and reviews anything the file requires.

Payment. Usually by direct deposit or cheque to the beneficiary.

What to expect on timing

A straightforward claim on a policy in force for several years, with a named beneficiary and documents supplied promptly, is frequently paid within a few weeks of the insurer receiving everything.

Longer where any of the following apply:

The policy is inside its first two years. The insurer will review the original application against medical records. This is standard practice on every early claim and is not an accusation. It adds time. See the contestability period.

The estate is the beneficiary. The money goes into the estate rather than to a person, which means waiting for the executor to be confirmed and, usually, for probate. That can take months. See naming your estate versus a person.

The cause of death needs further documentation. Where a coroner is involved, or a death occurred abroad, the insurer will want the fuller record.

The beneficiary is a minor or otherwise unable to receive the money directly, which triggers a different process. See naming a child under 18.

Documents are slow to arrive. This is the most common cause of delay and the one most within your control.

Practical points that save time

Order several death certificates. Banks, insurers, pension administrators, the land registry and government departments will each want one, and several will want an original rather than a copy. Getting six at the outset costs little and saves weeks of back and forth.

A funeral director’s statement of death is often accepted by insurers and is usually available faster than the official certificate. Ask whether it will do to get the claim moving.

Keep a record of who you spoke to and when. Settling an estate involves a lot of institutions and it becomes hard to track.

Claim promptly, and know that late is not fatal. There is no benefit to delay, and a claim made some time after a death is still a valid claim.

If you cannot find a policy

This comes up more often than people expect, particularly where the deceased was private about their affairs.

Places to look: bank and credit card statements for regular premium payments, tax records, safety deposit boxes, email for insurer correspondence, employers and former employers for group coverage, professional associations and alumni groups that sometimes offer coverage, and mortgage documents for creditor insurance.

The OmbudService for Life and Health Insurance operates a free policy search service for Canadians trying to locate a policy on a deceased family member. It contacts member insurers on your behalf. It is worth using rather than contacting companies one by one.

Other benefits to check

The life insurance claim is not usually the only one.

The Canada Pension Plan death benefit is a separate one-time payment administered by the federal government and applied for independently. CPP survivor and children’s benefits may also apply.

Workplace group coverage and pension survivor benefits are separate again, and so is any accidental death cover attached to a credit card or a bank account.

If a claim is refused or delayed

Ask for the reason in writing. You are entitled to it.

Every Canadian insurer has an internal complaints process, and it should be the first step. If that does not resolve matters, the OmbudService for Life and Health Insurance provides free, independent review for consumers.

The common reasons claims run into difficulty are set out in why claims are denied. Most of them trace back to the application rather than to the claim itself.

A note on the situation

Nobody reads this page under good circumstances. If the paperwork is more than you can manage right now, an executor, a family member or the advisor who arranged the policy can deal with the insurer on your behalf. There is no requirement to do it alone or immediately.