Funeral costs can range anywhere from $3,000 (basic services only) to $20,000, depending on the number of services selected. Final Expense coverage is the easiest way to ensure family members are not left with this and other final expenses as a result of your death.
Final Expense insurance provides a tax-free1 benefit to your beneficiary following your death. It can be used to cover final financial obligations that occur suddenly upon death, such as:
1Tax free: based on current CRA guidelines
Underwritten by Chubb Life Insurance Company of Canada 199 Bay Street, Suite 2500, P.O. Box 139, Commerce Court Postal Station, Toronto Ontario M5L 1E2.
The insurer of this benefit is Chubb Life Insurance Company of Canada (Chubb Life). Coverage is available for you, your spouse and dependent children in units of $5,000 and up to $25,000. You and your spouse must be at least 18 years old to be eligible for coverage. You do not need to provide any medical information to be eligible for coverage.
Upon your death, Chubb Life will pay your beneficiary the amount you have indicated. In the first 2 years of coverage1, the policy will only pay for an accidental death. After 2 years of coverage, a death from any cause2 is eligible for payment.
1From either the effective date or any reinstatement date of coverage
2Subject to all terms and provisions of the policy contract with Chubb Life Insurance Company of Canada
Your spouse is a person that is either legally married to you or cohabitates with you and has been publicly represented as your domestic partner for a period of at least one year in the community in which you reside.
Eligible children are your natural, adopted or step-kids, who are either; a) under 21, unmarried, and look to you to pay all the bills, because they don’t work more than 25 hours per week; b) under 26, unmarried and in the process of getting a post-secondary education, still dependent on you for support, because they don’t work more than 25 hours per week; or c) by reason of mental or physical illness, they are unable to support themselves and considered a dependent child under the terms of the Income Tax Act (Canada).
If you purchase coverage for your kids, all eligible children listed on the policy will be covered. Please note, that if you have a new dependent child, you must contact Chubb Life to add them to your policy. Their coverage will only be effective the date you add them to your policy.
Coverage for you and your spouse terminates at age 100. When coverage for your dependent children terminates depends on whether they are in a post-secondary education or not:
However, if your dependent child(ren), by reason of mental or physical illness, are unable to support themselves and considered a dependent child under the terms of the Income Tax Act (Canada), their coverage will continue until your coverage terminates.
Underwritten by Chubb Life Insurance Company of Canada 199 Bay Street, Suite 2500, P.O. Box 139, Commerce Court Postal Station, Toronto Ontario M5L 1E2.
Answers about the plan, including eligibility, options, enrollment, customer service and more.
Doesn't the government provide a death benefit to help pay for funeral costs?
Yes, but the assistance from the Canadian government may not be enough. In January 2013, the average death benefit paid by CPP was $2,280.52 and the maximum was $2,500. By having final expense coverage you'll know exactly how much your beneficiary(ies) will receive in the event of your death to assist with final expenses.
Source: Service Canada
I already have life insurance coverage so why do I need a final expense benefit?
Are there limitations to the policy I should be aware of?
In the first 2 years of coverage1, the policy will only pay for an accidental death. After 2 years of coverage, a death from any cause2 is eligible for payment. For full details on all exclusions and limitations of the policy, please go to the Chubb Life enrollment website to see a sample policy.
1From either the effective date or any reinstatement date of coverage
2Subject to all terms and provisions of the policy contract with Chubb Life Insurance Company of Canada
Who is the benefit paid to?
How is the premium determined?
Premium for you and your spouse will depend on age, gender and smoking status. For your children, the premium is a flat amount for $5,000, $10,000, $15,000, $20,000 or $25,000 of coverage (regardless of age or number of children).
Please note, that if you have a new dependent child you must contact Chubb Life to add them to your policy within 30 days. Their coverage will then become effective on the date of birth.
How do I pay for my premium?
Will my premiums ever go up?
What happens to my coverage if I no longer work at Accenture?