How to Notify Insurance Companies of a Death

For Canadian executors and beneficiaries, insurance claims require identifying all policies, submitting specific claims, and waiting for processing. Most life insurance is paid directly to designated beneficiaries outside the estate.

Identifying all insurance policies #

Locations to check:

Files at home:

• Filing cabinet for policy documents
• Safe or safety deposit box
• Filing of life events (marriages, births) — often include insurance updates

Email and digital:

• Search for 'insurance', 'premium', 'policy', 'beneficiary'
• Premium payment confirmations
• Annual policy statements

Bank statements:

• Premium payments showing as 'INSURANCE' or specific company name
• Direct debits

Employer:

• HR for group life insurance (typically covered)
• Group benefit booklet
• Employer-paid policies

Mortgage:

• Mortgage lender (often includes life insurance on mortgage)
• May be optional or required; check

Credit cards:

• Some credit cards include accidental death coverage for cardholder
• Travel insurance through some cards

Vehicle loans/leases:

• Some include death payoff benefit

Travel insurance:

• If death occurred during travel
• Specific travel insurance for trip

Financial adviser:

• May have records of all policies
• Some have policy register service

OLHI (OmbudService for Life and Health Insurance):

• Runs a free lost-policy search on request, contacting member insurers on your behalf^[2]
• Covers roughly 99% of the Canadian life and health insurance market
• Especially useful for older or forgotten policies once your own search of home, email, and financial records has come up empty

Canadian Life and Health Insurance Association (CLHIA):

• The insurers' industry association — publishes consumer guides on life and health insurance^[1]
• Does not itself run a policy-search service; for that, see OLHI above

Documents typically required #

Insurance company's claim form:

• Specific to each insurer
• Download from insurer's website
• May need beneficiary's signature

Original death certificate:

• Most insurers require original
• Some accept long-form (more detailed than standard)
• Some accept notarized copy

Beneficiary identification:

• Government photo ID
• Proof of relationship if specific (marriage certificate, birth certificate)

Will (if estate is beneficiary):

• Original or notarized copy
• Probate (if required)

Coroner's report:

• If death was sudden, unusual, or suspicious
• Specific situations only

Specific to suicide:

• Within 2-year suicide exclusion period — claim may be challenged
• After 2 years — typically covered

Specific to homicide:

• Special investigation
• May require police report

The claim process — typical sequence #

Notification #

Contact insurer's claims department. Most major insurers have specific 'Claims Services' or 'Bereavement Services' departments.

Provide initial information:

• Name of deceased
• Policy number(s) if known
• Date of death
• Beneficiary information
• Cause of death (if known)
• Your role (beneficiary, executor)

Form submission #

Receive claim package:

• Specific claim forms
• Documentation checklist
• Submission instructions

Complete claim forms:

• Beneficiary information
• Deceased's information
• Cause of death
• Bank information for payment

Submit documents:

• Per insurer's instructions
• Mail, email, or online portal
• Confirm receipt

Investigation #

Insurer reviews:

• Policy validity (premiums paid, no lapse)
• Beneficiary designation (current and valid)
• Death circumstances (within policy terms)
• Documentation completeness

Specific investigations:

• Sudden/unusual death — coroner involvement
• Within 2-year contestability period — may investigate application accuracy
• Suicide within 2 years — may decline claim
• Material misrepresentation in application — may decline

Payment #

Approved claims:

• Payment typically 4-8 weeks after complete claim
• Direct deposit or cheque
• Tax-free (life insurance proceeds typically tax-free in Canada)

Disputed claims:

• Specific dispute resolution
• Provincial insurance ombudsman if dispute
• Legal options if necessary

Life insurance — usually outside estate #

If designated beneficiary exists:

• Proceeds pay directly to beneficiary
• No estate involvement
• No probate required (designated beneficiary supersedes Will)
• No probate fees
• Often quicker payout
• Specific provincial law may provide creditor protection

If estate is beneficiary (or no designated beneficiary):

• Proceeds become part of estate
• Subject to probate if estate requires probate
• Subject to debts of estate
• Distributed per Will
• Probate fees apply
• Specific provincial law varies

Recommendation: Designate specific beneficiaries on individual life insurance policies to streamline distribution.

Group life insurance through employer #

Coverage: Typically 1-2x annual salary; sometimes more for senior employees.

Process:

• Notify employer HR
• Employer notifies insurance carrier
• Beneficiary completes claim forms
• Payment typically 4-8 weeks

Beneficiary:

• Employee may have designated specific beneficiary
• Default may be spouse or estate
• Check beneficiary designation status

Considerations:

• Some group coverage ends at retirement or termination
• Survivor benefit options may exist
• Pension survivor benefits often separate (see pension administrator)

Mortgage life insurance #

Purpose: Pays off mortgage upon death.

Process:

• Notify mortgage lender
• They process claim with their insurer
• Payment directly to mortgage (not to family/estate)
• Mortgage cleared

Considerations:

• Coverage typically decreases as mortgage balance decreases
• Premiums may continue after age limits
• Specific conditions and exclusions apply

Credit card and other 'add-on' insurance #

Credit card accidental death:

• Coverage typically limited to specific accidents
• Often modest amounts
• Specific to cardholder
• Claim through credit card company

Travel insurance:

• If death during travel
• Specific to trip coverage
• Claim through travel insurer

Vehicle loan death payoff:

• Some loan/lease contracts include
• Claim through lender

Each contract has specific terms.

Tax considerations #

Life insurance proceeds typically tax-free for the beneficiary (not included in income).

Exceptions:

• Policy was assigned as collateral with specific tax consequences
• Specific corporate-owned policies
• Specific 10-8 leveraged insurance arrangements

Probate fee consideration:

• Life insurance proceeds to estate are part of estate's value for probate fees (varies by province)
• Specific provincial rules vary

Designated beneficiary advantage:

• Proceeds bypass estate
• No probate fees
• Faster distribution
• Creditor protection in some provinces

Common claim complications #

Outdated beneficiary designation:

• Ex-spouse still designated
• Deceased beneficiary
• Estate may need to claim if no valid beneficiary

Lapsed policy:

• Premiums unpaid
• Policy may have grace period or have lapsed
• May not pay out

Material misrepresentation in application:

• Within 2-year contestability period
• Specific investigation
• May decline claim

Suicide within 2 years:

• Most policies decline within 2-year suicide exclusion
• After 2 years, typically covered

Complex circumstances:

• Death abroad
• Disputed circumstances
• Multiple beneficiaries with disputes

Specific to each insurer's claims process.

Multiple policies — coordinate #

If deceased had multiple policies:

• File each claim separately
• Track each through process
• Some may pay faster than others
• Coordinate with overall estate planning

What we focus on at It's Simple Will #

The Life Discovery Kit (post-payment) captures all insurance policies in one place — insurer, policy number, beneficiary, contact information. This documentation dramatically reduces the 'searching for policies' burden on the family.

Related guides #

• Life insurance at death Canada
• How to notify investment companies of a death
• Notifying CRA after a death
• First 30 days executor