Insurance Claims After Death in Canada — Life, Mortgage, Credit, Travel
After a Canadian death, the family often discovers multiple insurance policies they didn't know existed. A workplace group life policy. A mortgage life insurance product the deceased opted into 20 years ago. A credit card balance protection plan. Accidental death coverage embedded in an automobile insurance policy. Each one is a separate claim with its own forms, timelines, and beneficiary structure. Total benefits can be substantial — but only if the family identifies and claims them.
This guide covers the major insurance categories Canadians commonly hold and the practical process for filing each type of claim.
Step 1 — Inventory potential coverage
Before contacting any insurer, build a list of potential policies. Look in:
Bank account statements (12 months): Monthly or annual premium deductions for life or critical illness coverage.
Credit card statements: Recurring small charges that may be balance protection insurance, monthly premiums for product-linked insurance.
Tax returns: Some insurance products (e.g., disability insurance receipts) show on tax returns.
Safe deposit box: Original policy documents, certificates of insurance, beneficiary designation forms.
Employer documentation: Group life insurance, AD&D coverage, business travel coverage, pension survivor benefits.
Mortgage documents: Whether mortgage life insurance was elected at origination or later.
Vehicle insurance: Many auto policies include life/AD&D benefits for accidents involving the insured vehicle.
The deceased's financial advisor, accountant, or lawyer: Often know about policies the family doesn't.
OLHI lost-policy search: The OmbudService for Life & Health Insurance operates a free service that forwards eligible requests to its participating member insurers to check for a deceased person's policy. Generally available once the death is more than 3 months but less than 2 years in the past; check current eligibility rules on OLHI's site.
Step 2 — Identify the beneficiary on each policy
For each policy identified, determine:
- The named beneficiary (could be the estate, a specific person, multiple persons, or a contingent beneficiary)
- Whether the beneficiary designation has been updated recently
- Whether the policy has any assignment (e.g., collateral assignment to a lender)
The beneficiary on the policy takes precedence over what the will says about insurance proceeds. A policy naming a specific spouse pays to that spouse regardless of will provisions.
Step 3 — File each claim
For each policy, file a claim with the insurer. Typical documentation:
- Insurer's claim form (specific to each insurer)
- Original certified death certificate (most insurers require this; some accept secure digital submission)
- Proof of beneficiary identity (government ID)
- Original policy if available
- Sometimes additional documentation (e.g., medical records for accidental death claims, court documents for contested claims)
Most major insurers have dedicated bereavement teams. The claim can typically be initiated by phone and completed with documentation submission by mail or secure portal.
Specific insurance types
Individual life insurance
The major Canadian life insurers (Sun Life, Manulife, Canada Life, Industrial Alliance, Equitable Life, Empire Life, etc.) all have standard claim processes. Term policies pay the face amount; permanent policies pay face amount plus any accumulated cash value or paid-up additions.
For straightforward claims (named beneficiary, natural death after the contestability period), payment within 30 days is typical.
Group life insurance through employer
The employer's HR or benefits team coordinates the claim with the group insurer. The beneficiary is usually whoever the employee designated on the group enrollment form (often the spouse by default). Group life amounts vary widely — some employers provide 1-2x salary as base coverage; others provide much more.
Don't assume the spouse knows about the group life coverage — many employees don't think to mention it.
Mortgage life insurance (creditor insurance)
Pays the outstanding mortgage balance to the lender (not to the family). Initiated through the mortgage lender; the lender coordinates with the affiliated creditor insurer. Post-claims underwriting can occur — if the insurer determines the original application contained misrepresentations, the claim may be denied even after years of premium payments. Be prepared for this possibility.
Credit card balance protection insurance
If the deceased had balance protection insurance on a credit card, it may pay off the outstanding balance at death. Contact the card issuer to determine if coverage existed and to initiate any claim. Coverage is typically a percentage of the balance, with limits.
Travel insurance
If death occurred during travel, the travel insurance policy may cover medical evacuation, repatriation of remains, and various other benefits. Contact the insurer immediately — many travel policies have notification deadlines (often within hours of the emergency).
Check both standalone travel insurance and travel coverage embedded in credit cards, employer benefits, or provincial health coverage.
AD&D (Accidental Death and Dismemberment)
Pays only if death resulted from a covered accident. Coverage may exist through employer benefits, association memberships (CAA, professional associations), auto insurance, or standalone policies. The definition of "accident" varies by policy; carefully review the policy language.
Pension survivor benefits
Many employer pension plans (defined benefit pensions especially) include a survivor benefit — typically 50-60% of the pension continues to the surviving spouse for life, plus possibly a lump-sum death benefit. The pension administrator initiates the survivor benefit process.
Common complications
Contestability period. Most life insurance policies have a 2-year contestability period at the start, during which the insurer can investigate the original application for misrepresentations. If the deceased died during this period (especially for non-accidental causes), expect the insurer to investigate.
Suicide clauses. Many policies exclude suicide within a specified period (often 2 years) from the start of the policy. After this period, suicide is typically covered. MAID is treated separately and is generally covered.
Beneficiary disputes. If multiple parties claim to be beneficiaries, the insurer may pay into court and let the parties resolve the dispute.
Policies with assignment. If the policy has been assigned (collateral assignment to a lender, irrevocable assignment to an ex-spouse, etc.), the assignment terms control distribution.
Lost policies. The OLHI lost-policy search is the best tool for finding lost individual policies among its participating member insurers.
What we focus on at It's Simple Will
The Life Discovery Kit captures every insurance policy in one private document — insurer name, policy number, type of coverage, named beneficiary, premium structure. Without it, executors routinely miss policies entirely, sometimes leaving substantial benefits unclaimed.
See our companion guides: handling a loved one's finances after death, mortgages and loans after death, and government benefits after death.
Citations & sources
- [1]OLHI — Search for a lost policy of a deceased person — OmbudService for Life & Health Insurance
- [2]Canada.ca — What to do when someone dies: Benefits and programs — Government of Canada
- [3]FCAC — Credit or loan insurance — Government of Canada
Frequently asked questions
What insurance might the deceased have had?
Common categories include — individual life insurance (term or permanent, purchased privately); group life insurance through an employer or association; mortgage life insurance (creditor insurance attached to a mortgage); credit card insurance (balance protection insurance on credit cards); travel insurance (if death occurred during travel); accidental death and dismemberment (AD&D) coverage; and pension survivor benefits (a form of insurance built into many pension plans). Search the deceased's records, contact the employer's HR, and review credit card terms to identify all potential coverage.
How do I find life insurance policies I don't know about?
Several approaches — review bank account statements for monthly premium deductions, check tax returns for any insurance-related entries, contact the deceased's financial advisor or accountant, review safe deposit box contents, use the OmbudService for Life & Health Insurance (OLHI) lost-policy search, which forwards eligible requests to its participating member insurers, and review employer benefits documentation. Many Canadians have group life insurance through work that family members don't know about.
Who is paid the life insurance benefit?
The named beneficiary on the policy. If the policy names a specific person, the benefit goes directly to that person and bypasses the estate (and probate). If the policy names the estate (or no beneficiary is named), the benefit goes to the estate and is subject to probate and estate distribution. Beneficiary designations on the policy take precedence over what the will says about insurance.
How long does the claim take?
Most straightforward life insurance claims pay within 30 days of complete documentation. Factors that slow the process — contestability period (typically the first 2 years of a policy, during which the insurer can investigate misrepresentations on the original application); accidental death claims requiring investigation; complex beneficiary disputes; policies with assignment to a third party (collateral assignment, etc.); and missing documentation.
What about MAID (medical assistance in dying)?
Death by medically assisted death does not affect life insurance payouts in Canada. The Canadian Life and Health Insurance Association and the insurance industry have generally aligned that MAID is treated as a natural death from the underlying illness for insurance purposes, not as suicide. Most policies explicitly accept MAID claims under standard terms. Some older policies may have specific language; check policy terms.
Are insurance benefits taxable?
Life insurance death benefits paid to a beneficiary are generally not taxable income in Canada. The recipient does not report the benefit on their tax return. Interest earned on the benefit after death (if the insurer holds the funds before payment) is taxable. Accelerated death benefits paid before death may have specific tax treatment. Consult an accountant for complex situations.