All Guides

How Do Life Insurance Claims Work?

Woman checking through some notes.

If you have lost someone close to you, the last thing you need is added stress. Unnecessary red tape, or confusion surrounding what the claims process entails are not things you need to be worrying about right now. At Cover Direct, we make claiming life insurance as straightforward and hassle-free as possible, so you can receive the benefit amount when you need it. We want to share all there is to know in order to proceed with a claim. We’ll even answer the most common questions our customers ask us. You’ll learn not only how to start your claim, but what the process involves - so you can stay informed and get back to living your life with one less thing to worry about. 

How do I make a life insurance claim? 

Step 1: Let our team know  

Once the policyholder has passed away, it’s important that you get in touch with us so you can receive the benefit amount as soon as possible. To get started, just email us at Alternatively, you can contact us by phone or mail. From there, we’ll send you or your family the necessary documentation to the address that was provided to us. 

Step 2: Fill out the claims forms

So you’ve received your documents in the mail. Now it’s time to fill out and complete the forms. Don't worry about anything extra you might need to fulfill the claim. It's all in there. 

Step 3: Return your signed documents

Having signed the relevant paperwork, you can go ahead with returning it via mail. Our address is Cover Direct Insurance Agency, PO Box 64004, Royal Bank Plaza, Toronto, Ontario, M5J 2T6. 

Step 4: You’re good to go 

After completing the above steps, we’ll finish the rest. Once the claim has been approved, the benefit amount will be paid to whoever is legally entitled to it. This is typically the legal beneficiary that has been designated by the policyholder during their application or after a change of beneficiary request. If no one has been designated by the policyholder, payment will be made to their estate and distributed according to the policyholder’s Will or the applicable law. Payment will be sent by direct deposit.

When should I file a life insurance claim? 

Claims should be made as soon as possible to ensure the benefit amount is paid promptly. As mentioned above, you can contact us in a number of ways so we can assess the claim for you right away. 

How long do life insurance claims take? 

The sooner we receive the claim, the quicker we can process it for you. It's why it's so important to speak with us as soon as you can, as it's very difficult to give an exact timeframe for the speed of claims being paid otherwise. We understand that this is a difficult time for loved ones, but it’s vital to begin the claims process as close to the time of the life insured’s passing to avoid delay.

How long do I have to make a life insurance claim? 

Filing deadlines to make your claim can vary throughout Canada depending on the provider. Thankfully this is not something you need to worry about if you have a policy withCover Direct. Once the policy was active at the time of the life insured’s passing, you can make a claim at any time. 

What can the benefit amount be used for?

The benefit amount will be paid to the beneficiary as a lump sum by direct deposit to do with as they please. Perhaps you may want to use it to help pay for funeral expenses or use it towards mortgage repayments or college tuition fees. Once the claim has been approved, the choice is entirely up to the legal beneficiary. Whatever the choice may be, the benefit amount could be used to help ease worries at an already difficult time. 

Why might a claim be denied? 

This is relevant if you’re a reader who already has a policy with us, or for those of you who are considering taking out a life insurance policy, but it’s vital to know the common pitfalls so you can ensure your benefit amount is paid. 

  • The type of death isn’t covered by the policy – With Cover Direct, the benefit amount will not be paid if you commit suicide within two years of the start date of your policy. However, we will pay the benefit amount for death by any other reason. 
  • Failing to disclose accurate information on application – Honesty is integral to a life insurance application. Even minor misrepresentations of smoking status or drug and alcohol use can be grounds for a claim denial.  
  • Not keeping up with your monthly payments – With Cover Direct, your coverage will be cancelled if two consecutive monthly premium payments are missed. 

Can you claim on your own life insurance? 

In the vast majority of cases, the benefit amount is kept for the named legal beneficiary of the policy. This means the lump sum payment will be kept for them until you pass away. There is one exception to this, which is if you're diagnosed with a terminal illness. In this instance, the full benefit amount will be paid upfront, to help keep life on track. 

More reasons to choose Cover Direct

We want to provide insurance that is straightforward and accessible. It is our hope that by avoiding brokers, complicated application forms and ever-changing premium payments, Cover Direct can be the choice for you if you want to help protect your loved ones when you’re gone. Reducing stress during the claims process is an important part of that. However, there are many more reasons to get coverage through Cover Direct: 

  • Coverage from as little as $9.66 per month1
  • Available for all Canadian residents aged 18-702
  • No medicals or blood tests for approval – we only ask just a few health and lifestyle questions
  • Easy claims process – We aim to make the process as easy and straightforward as possible
  • Terminal Illness Coverage – Receive your full benefit amount upfront3 if you’re diagnosed with a terminal illness
  • Get up to $1.5 million of coverage depending on your age 
  • Immediate protection – Our no waiting period means you get coverage from day 14
  • Easy to apply – Coverage in minutes with our quick and easy process5
  • Local experts – Our experienced team are based right here in Canada
  • Worldwide coverage – 24/7, wherever you are with Cover Direct
  • Flexibility – You can apply to make change to your policy at any time with no policy fees!
  • Exclusive to Cover Direct – No need for brokers. Family Life Insurance is available exclusively to Cover Direct
  • Optional extra coverage – Prepare for any eventuality with optional critical illness insurance and children’s coverage

Want to learn more? 

If you want to speak with us or if you have any other questions, our team is on hand and ready to help. You can call us TOLL FREE on to get a free, no-obligation quote today. Our friendly Canadian sales team is available from Monday-Friday 9am to 8pm ET (excluding public holidays).

Alternatively, you can email us

Call us today about Life Insurance


For a 32-year-old female non-smoker with age-based premiums and $100,000 of coverage. 


Available to Canadian residents aged 18-70 only. Not yet available in Quebec. 


Where death is expected within 12 months. A medical professional has to diagnose the terminal illness.


Immediate protection starts from day 1 of your policy, excluding death as a result of suicide in the first 24 months. Waiting periods may apply to Optional children's coverage and critical illness coverage, as per the policy terms and conditions.


Policy coverage, limitations and exclusions are subject to the full Terms and Conditions. Not yet available in Quebec.