Life Insurance: How Does My Family Collect When I Die?

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Wonder how your family
collects when you die?

Two common questions people have about life insurance are, “What happens once the insured dies?’ and, “How do the beneficiary or beneficiaries go about collecting the life insurance proceeds?”

The first step when the insured dies is to contact the insurance company or your agent/broker and inform them of the death. This will start the claims paying process. 

Keep in mind that the insurance company will require a death certificate, which can usually be obtained from the funeral home. They will also want the beneficiaries to complete a claimant form, which will spell out some of the information around the insured’s death, such as when they passed away, the cause of death, and all the personal information of the beneficiary or beneficiaries. The beneficiary will then be required to sign this form and then, depending on the nature of the claim, the insurance company may contact the insured’s doctor to verify some of the information in the initial application.

The insurance company is much more likely to want to do some type of post-claim underwriting if the insured were to pass away within the first two policy years. The claims paying process and requirements do differ from company to company, so it’s important that the beneficiary verifies this information with an agent/broker or the insurance carrier.

For more details on life insurance in Canada, please contact us at 1-866-899-4849 or visit our Non-Medical Life Insurance Quote Page and our Term Life insurance Instant Quote Page.

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  • Tamara
    June 21, 2013 at 8:07 pm

    Will my mothers Canada Protection Plan pay out if she dies right away. My frind told me there is a waiting period

    • LSM Insurance
      June 22, 2013 at 10:23 am

      Thanks for the note. Some of Canada Protection plans do have a waiting period and other pay out on an immediate basis. You could call the them at 416-447-6060 to verify which type of plan you have.