Costs, claims and policy management
Beneficiaries, tax, missed payments, replacing a policy, and how a claim actually gets paid.
11 articles in this section
Buying the policy is the short part. Owning it lasts decades, and most of the questions that actually cost people money come later: who is named as beneficiary and whether that still makes sense, what happens if a payment is missed, whether the payout is taxed, and what a claim actually requires.
Several of these pages touch on tax and estate law. Those areas depend heavily on your own circumstances and on rules that change, so treat what is here as orientation and confirm the specifics with a tax or legal professional before acting.
New to this? Start with Naming and changing a beneficiary, then come back for whichever question below is yours.
Start here
Filing a life insurance claim in Canada
The steps to claim a death benefit in Canada, the documents required, realistic timelines, and what to do when you cannot find the policy.4 minNaming and changing a beneficiary
How beneficiary designations work in Canada, why primary and contingent both matter, and the life events that should always prompt a review.4 minIs the death benefit taxable in Canada?
The general rule on life insurance death benefits and income tax in Canada, the situations that change it, and why probate fees are a separate question.4 min
Everything else in costs, claims and policy management
Why life insurance claims are denied
The actual reasons Canadian life insurance claims are refused, why most of them trace back to the application, and what to do if a claim is declined.4 minNaming your estate versus naming a person
Why naming a person usually beats naming your estate in Canada, what probate and creditor exposure mean in practice, and when the estate is the right choice.5 minIrrevocable beneficiaries
What naming an irrevocable beneficiary actually restricts, why it is used after separation, and the traps of naming one casually or naming a child.4 minNaming a child under 18 as beneficiary
Why naming a child directly causes problems in Canada, what happens to the money until they turn 18, and the structures that work better.4 minTax on cash value, dividends and policy loans
How adjusted cost basis decides what is taxable when you withdraw from, surrender or borrow against a Canadian life insurance policy.4 minMissed payments, lapse, cancelling and reinstatement
What the grace period covers, what happens when a policy lapses, how reinstatement works, and the options short of cancelling that nobody mentions.4 minReplacing an existing policy
What you give up when you replace a life insurance policy in Canada, the replacement declaration rules, and the questions to ask first.4 minMoving provinces or leaving Canada
Why a Canadian policy follows you between provinces and usually abroad, what to tell the insurer, and what changes if you leave Canada.4 min
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