• Simple Claims: If the claim is straightforward (e.g., the policyholder passed away due to natural causes and the documentation is in order), the payout can take as little as 7 to 14 business days after submitting the claim.

• Complex Claims: Claims involving unusual circumstances, such as accidental death, missing beneficiaries, or suspected fraud, may take several weeks or even months to resolve.

• Notify the Insurance Company: Contact your advisor as soon as possible after the policyholder's death to begin the claim process.

• Submit Required Documents: Provide the necessary paperwork, which typically includes:

  • A death certificate (original or certified copy).

  • The completed claim form provided by the insurer.

  • Additional documents, if required, such as proof of identity or medical reports.

• Verification by the Insurer: The insurer will review the claim, verify the policy details, and ensure all requirements are met.

• Payout Issued: Once the claim is approved, the insurer disburses the benefit directly to the named beneficiaries, usually via cheque or direct deposit.

• Cause of Death: Claims for natural causes are processed faster, while deaths involving accidents, crime, or unusual circumstances may require further investigation.

• Policy Contestability Period: If the policyholder passes away within the first two years of the policy, the insurer may conduct a detailed review to ensure all information provided at the time of application was accurate. This could delay the payout.

• Beneficiary Issues: If the named beneficiaries are unclear, deceased, or unable to be located, the insurer may need additional time to resolve the matter.

• Outstanding Premiums or Lapsed Policies: If there are unpaid premiums or the policy has lapsed, the claim may be delayed or denied.

• Missing Documentation: Incomplete or missing paperwork can significantly delay the process.

• Provide Accurate Information: Ensure the claim form is completed accurately, and all required documents are submitted promptly.

• Keep Policy Updated: Maintain up-to-date beneficiary information and keep a record of the policy details to simplify the claims process.

• Work with an Advisor: Your life insurance advisor can help guide beneficiaries through the process, ensuring no steps are missed.

If a claim is dragging its feet:

• Give your advisor a friendly nudge—they're like the claim whisperer.

• Double-check you've handed over every paper, form, and signature (because insurance loves its paperwork).

In Canada, most life insurance claims are processed quickly, with payouts issued within a few weeks for straightforward cases. However, certain factors, such as the cause of death or incomplete documentation, can extend the timeline. To ensure a smooth process, notify your advisor promptly, provide all required documents, and seek guidance from one our experienced life insurance advisor if needed.