The claim process
The beneficiary contacts the insurer and provides a death certificate and a claim form. Once the claim is approved, the insurer pays the death benefit, often within a few weeks.
Beneficiary designations
You name who receives the benefit, and can name more than one with set percentages. A named beneficiary receives the money directly, bypassing the estate and probate.
Tax and no-beneficiary cases
A benefit paid to a named beneficiary is generally tax-free. If no beneficiary is named, the benefit is usually paid to the estate, where it may be subject to probate and creditor claims.
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Book my free review →Frequently asked questions
Is a life insurance payout taxed?
A death benefit paid to a named beneficiary is generally received tax-free.
How is a life insurance claim paid?
The beneficiary submits a death certificate and claim form; once approved, the insurer pays the benefit, often within a few weeks.
Can I name more than one beneficiary?
Yes. You can name multiple beneficiaries and set the percentage each receives.
What if no beneficiary is named?
The benefit is usually paid to the estate, where it may be subject to probate and creditor claims, so naming a beneficiary is generally preferable.
This page is for general educational purposes only and does not constitute personalized financial, tax, legal or accounting advice. Figures, limits and coverage ranges are illustrative and change over time - verify current terms before acting. Insurance and registered-account eligibility is subject to underwriting and government rules. Compensation is disclosed in writing before any application is signed. Neelesh Kumar is a Licensed Life & Health Insurance Agent regulated by FSRA - verify at fsrao.ca. © 2026 Wealthready · FinanceWithNeelesh · Kitchener, Ontario.