Final Expense Insurance

Final Expense Insurance  

Overview

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.
 

What is Final Expense Insurance?

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:

  • Funeral services
  • Death announcement
  • Pay off credit card balances and utility bills due at time of death
  • Travel cost for a family member to attend the funeral

 

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.

Tell Me More

How does it work?

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

 

Who is an eligible spouse or dependent child?

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.
 

What is the coverage termination age?

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:

  • Age 21 if unmarried and look to you to pay all the bills, because they don’t work more than 25 hours per week;
  • Age 26 if 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;


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.

FAQs

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?

    The final expense benefit is paid in addition to any life insurance you already have and is intended to help you with expensive costs of a funeral and leave more of your life insurance benefit to pay for other expenses such as mortgage payments and education for your children.
  • 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?

    The benefit is paid to the person, or persons, you have named as your beneficiary (ies), in accordance with the provisions of your policy with Chubb Life. You can change your beneficiary at any time. Chubb Life will provide you with the required forms to do this in your policy package.
  • 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?

    When you enroll for coverage on Chubb Life’s website, you can decide if you want to pay your premium monthly or annually. You will pay Chubb Life directly using your credit card or pre-authorized debit (PAD).
  • Will my premiums ever go up?

    Premiums will increase as you get older. You will enter a new premium rate level every 5 years starting at age 25. If you apply just before you are entering a new rate level, we Chubb Life guarantee the rate you purchased at, for the first year of coverage.
  • What happens to my coverage if I no longer work at Accenture?

    Once coverage is purchased it is yours to take with you regardless of your employment eligibility, and provided you continue to pay premiums it won’t be terminated until you reach age 100.

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