{"id":32865,"date":"2025-12-23T14:00:36","date_gmt":"2025-12-23T19:00:36","guid":{"rendered":"https:\/\/www.rbcinsurance.com\/en-ca\/?p=32865"},"modified":"2025-12-24T09:26:14","modified_gmt":"2025-12-24T14:26:14","slug":"what-disqualifies-life-insurance-payout-common-reasons","status":"publish","type":"post","link":"https:\/\/www.rbcinsurance.com\/en-ca\/advice-learning\/life-insurance\/what-disqualifies-life-insurance-payout-common-reasons","title":{"rendered":"What Disqualifies a Life Insurance Payout? Common Reasons"},"content":{"rendered":"\n<div class=\"wp-block-rbc-template-selector templateSelector template__article articleSingle\" data-template=\"article\">\n<div class=\"wp-block-group articleSingle__container tabListStickyWrapper is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group articleSingle__container__hero is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group articleSingle__container__hero__inner is-layout-flow wp-block-group-is-layout-flow\">\n<span class=\"rbc-yoast-breadcrum-span\"><span><a href=\"https:\/\/www.rbcinsurance.com\/en-ca\/\">Home<\/a><\/span><\/span>\n\n\n\n<div class=\"wp-block-group articleSingle__featuredImage__group is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group articleSingle__title__group is-layout-flow wp-block-group-is-layout-flow\"><h1 class=\"wp-block-post-title\">What Disqualifies a Life Insurance Payout? Common Reasons<\/h1>\n\n\n<div class=\"wp-block-group articleSingle__date__group is-layout-flow wp-block-group-is-layout-flow\"><div class=\"wp-block-post-date\"><time datetime=\"2025-12-23T14:00:36-05:00\">December 23, 2025<\/time><\/div>\n\n\n<span class=\"wp-block-rbc-html-element articleSingle__readTime\">11 Min Read<\/span>\n<\/div>\n\n\n\n<div class=\"wp-block-group articleSingle__author__group is-layout-flow wp-block-group-is-layout-flow\">\n<img decoding=\"async\" src=\"https:\/\/www.rbcinsurance.com\/en-ca\/wp-content\/uploads\/sites\/2\/2021\/06\/Avatar.webp?quality=80&w=128\" alt=\"Lisa Jackson\">\n\n\n\n<div class=\"wp-block-group articleSingle__author__details is-layout-flow wp-block-group-is-layout-flow\">\n<span class=\"wp-block-rbc-html-element articleSingle__author__name\">Lisa Jackson<\/span>\n\n\n\n<span class=\"wp-block-rbc-html-element articleSingle__author__designation\"><\/span>\n<\/div>\n<\/div>\n<\/div>\n\n\n<figure class=\"articleSingle__featuredImage wp-block-post-featured-image\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/www.rbcinsurance.com\/en-ca\/wp-content\/uploads\/sites\/2\/2025\/12\/disqualifies-life-insurance-payout.jpg?quality=80&amp;w=1024\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"What disqualifies a life insurance payout.\" style=\"object-fit:cover;\" srcset=\"https:\/\/www.rbcinsurance.com\/en-ca\/wp-content\/uploads\/sites\/2\/2025\/12\/disqualifies-life-insurance-payout.jpg 1074w, https:\/\/www.rbcinsurance.com\/en-ca\/wp-content\/uploads\/sites\/2\/2025\/12\/disqualifies-life-insurance-payout.jpg?resize=300,200 300w, https:\/\/www.rbcinsurance.com\/en-ca\/wp-content\/uploads\/sites\/2\/2025\/12\/disqualifies-life-insurance-payout.jpg?resize=768,512 768w, https:\/\/www.rbcinsurance.com\/en-ca\/wp-content\/uploads\/sites\/2\/2025\/12\/disqualifies-life-insurance-payout.jpg?resize=1024,683 1024w, https:\/\/www.rbcinsurance.com\/en-ca\/wp-content\/uploads\/sites\/2\/2025\/12\/disqualifies-life-insurance-payout.jpg?resize=420,280 420w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group articleSingle__container__main is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group articleSingle__container__page__nav is-layout-flow wp-block-group-is-layout-flow\">\t\t<div class=\"socials-block\">\n\t\t\t\t\t\t<p class=\"socials-block-title\">\n\t\t\tShare this article\t\t<\/p>\n\t\t<div class=\"social-links mob-mar-b-hlf mob-mar-t-hlf\">\n\t\t\t\t\t<a class=\"social-button-wrapper sharing-custom sharing-email\" href=\"mailto:?subject=What Disqualifies a Life Insurance Payout? Common Reasons &#038;body=Hi, I thought you might be interested in this article from RBC Insurance: https:\/\/www.rbcinsurance.com\/en-ca\/advice-learning\/life-insurance\/what-disqualifies-life-insurance-payout-common-reasons\">\n\t\t\t\t<img decoding=\"async\" src=\"https:\/\/www.rbcinsurance.com\/en-ca\/wp-content\/plugins\/rbc-blocks\/assets\/img\/icons\/icon-email.svg\"\n\t\t\t\talt=\"envelope icon\">\n\t\t\t\t<span>\n\t\t\t\tEmail\t\t\t\t<\/span>\n\t\t\t<\/a>\n\t\t<div class=\"social-button-wrapper sharing-copy-wrapper\">\n\t\t\t<button class=\"sharing-custom sharing-copy\" data-url=\"https:\/\/www.rbcinsurance.com\/en-ca\/advice-learning\/life-insurance\/what-disqualifies-life-insurance-payout-common-reasons\">\n\t\t\t<img\n\t\t\t\tsrc=\"https:\/\/www.rbcinsurance.com\/en-ca\/wp-content\/plugins\/rbc-blocks\/assets\/img\/icons\/icon-related.svg\"\n\t\t\t\talt=\"copy icon\">\n\t\t\t<span id=\"sharing-copyUrl-Label\">\n\t\t\t\tCopy URL\t\t\t<\/span>\n\t\t\t<\/button>\n\t\t\t<input type=\"text\" class=\"sharing-copy-text\" aria-labelledby=\"sharing-copyUrl-Label\">\n\t\t<\/div>\n\t<\/div>\n  \t\t<\/div>\t\n\t\t\n\n\n<div class=\"wp-block-rbc-tabs-list tabsList\" data-switch=\"lgBp\" data-target-heading=\"h2\"><p class=\"tabsList__heading\">On this page<\/p><div class=\"tabsList__wrapper\"><button class=\"selectDropdown__button\" aria-haspopup=\"listbox\" aria-expanded=\"false\"><span class=\"selectDropdown__title\">Understanding life insurance payouts<\/span><span class=\"selectDropdown__chevron\"><\/span><\/button><ul class=\"tabsList__items selectDropdown__list\"><li class=\"selectDropdown__list__item tabsList__item selected\"><a href=\"#h-understanding-life-insurance-payouts\">Understanding life insurance payouts<\/a><\/li><li class=\"selectDropdown__list__item tabsList__item \"><a href=\"#h-how-does-the-claim-process-work-and-how-long-does-it-take\">How does the claim process work \u2014 and how long does it take?<\/a><\/li><li class=\"selectDropdown__list__item tabsList__item \"><a href=\"#h-10-reasons-why-a-life-insurance-payout-is-denied\">10 reasons why a life insurance payout is denied<\/a><\/li><li class=\"selectDropdown__list__item tabsList__item \"><a href=\"#h-how-to-prevent-your-claim-from-being-disqualified\">How to prevent your claim from being disqualified<\/a><\/li><li class=\"selectDropdown__list__item tabsList__item \"><a href=\"#h-how-do-you-claim-a-death-benefit\">How do you claim a death benefit?<\/a><\/li><li class=\"selectDropdown__list__item tabsList__item \"><a href=\"#h-protect-your-life-insurance-payout\">Protect your life insurance payout<\/a><\/li><li class=\"selectDropdown__list__item tabsList__item \"><a href=\"#h-faqs-about-what-disqualifies-a-life-insurance-payout\">FAQs about what disqualifies a life insurance payout<\/a><\/li><\/ul><\/div><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group articleSingle__content__main tabListHeadings is-layout-flow wp-block-group-is-layout-flow\">\n<section class=\"wp-block-rbc-section-block  pos-rel\" style=\"border-radius:0px\">\n<div class=\"wp-block-rbc-section-inner-block  section-inner \" style=\"border-radius:0x\">\n<p>Many Canadians wonder whether life insurance will actually come through when it counts \u2014 a doubt that can make even the most practical people put off getting coverage. But the truth is far more reassuring: in Canada, <a href=\"http:\/\/clhia.uberflip.com\/i\/1539498-canadian-life-and-health-insurance-facts-2025-edition\/2?\" data-dig-id=\"LP-LifeInsurance-32865-2fb4d064\" data-dig-category=\"LP-LifeInsurance\" data-dig-action=\"link click\" data-dig-label=\"life insurance claims are rarely denied\" class=\"rbc-link-format\">life insurance claims are rarely denied<\/a>. In fact, Canadian insurers pay out billions in benefits every year, doing exactly what they\u2019re meant to do \u2014 support families.<\/p>\n\n\n\n<p>Instead of fretting about whether a payout will come through, it\u2019s far more empowering to understand the small handful of situations that can complicate things. Knowing these exceptions isn\u2019t about expecting the worst \u2014 it\u2019s about giving you and your family clarity and protection. In this article, we break down the most common reasons a life insurance payout might be delayed or denied, and how to keep your coverage working exactly as intended.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-key-takeaways\">Key takeaways<\/h3>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p>In Canada, life insurance pays out the vast majority of the time. Denied claims are rare.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Most issues arise from preventable problems like misrepresentation, undisclosed medical details, policy lapses, or beneficiary complications.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>If the cause of death falls under an exclusion (like risky activities or illegal behaviour), the insurer may not pay the claim.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>A lapse in premium payments ends the coverage, meaning the policy won\u2019t pay out unless it\u2019s reinstated.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Keeping beneficiary information updated helps ensure the payout goes to the right people without delays or legal detours.<\/p>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-understanding-life-insurance-payouts\">Understanding life insurance payouts<\/h2>\n\n\n\n<p>Life insurance is built on a simple idea: you pay ongoing fees (usually monthly or annually), and in return, the insurer provides coverage on your life. If you pass away while the policy is active, your beneficiaries receive the death benefit \u2014 a tax-free lump sum equal to the amount of coverage you chose.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Who receives the payout?<\/h3>\n\n\n\n<p>The death benefit goes to the beneficiary or beneficiaries you\u2019ve named \u2014 a spouse, partner, children, another loved one, or a charity. If there are multiple beneficiaries, you decide how the benefit is divided.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What affects the payout amount?<\/h3>\n\n\n\n<p>The size of the death benefit depends on the amount of coverage you purchased, and any optional add-ons (called riders) can influence the final payout.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-does-the-claim-process-work-and-how-long-does-it-take\">How does the claim process work \u2014 and how long does it take?<\/h2>\n\n\n\n<p>Once a claim is submitted, the insurer confirms the policy was active, verifies the required documents, and checks for any exclusions. In most provinces, insurers need to pay out within 30 days of receiving all information, and claims may be processed even faster. Typically, <a href=\"http:\/\/clhia.uberflip.com\/i\/405151-a-guide-to-life-insurance\/35?\">payments can be expected<\/a> within a week to 10 days of submitting a complete claim.<\/p>\n\n\n\n<p>After approval, the funds are released to the beneficiary or beneficiaries, who can use them however they choose \u2014 from covering household bills to paying off a mortgage to supporting long-term goals like retirement or education.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-10-reasons-why-a-life-insurance-payout-is-denied\">10 reasons why a life insurance payout is denied<\/h2>\n\n\n\n<p>Most life insurance claims in Canada are paid out without any snags. When a payout doesn\u2019t happen, it\u2019s usually because of a specific rule or an issue that could have been prevented. Below are some of the most common reasons a death benefit might not be approved, along with tips on how to avoid them.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Lying or misrepresenting<\/h3>\n\n\n\n<p>Insurers rely on the personal details you provide \u2014 your age, lifestyle habits, occupation, smoking status, and more \u2014 to assess risk. If any of those details are inaccurate or incomplete \u2014 whether forgotten, glossed over, or intentionally left out \u2014 it can cause issues during a claim review.<\/p>\n\n\n\n<p>Misrepresentation can look like:<\/p>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p>Downplaying or omitting parts of your medical history.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Understating smoking, vaping, nicotine, alcohol, or substance use.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Leaving out higher-risk activities (like extreme sports).<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Reporting your age or lifestyle details incorrectly.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Omitting occupational risk.<\/p>\n\n\n\n<p><\/p>\n<\/li>\n<\/ul>\n\n\n\n<p>Even small omissions can affect eligibility. Intentional misrepresentation \u2014 like claiming you\u2019re a non-smoker when medical evidence shows nicotine use \u2014 can lead to higher premiums, denied coverage, or a denied payout.<\/p>\n\n\n\n<p>Honest mistakes, however, are different. If someone realizes they made an error, updating the information with the insurer quickly can help prevent claim complications.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. You didn\u2019t disclose a medical condition<\/h3>\n\n\n\n<p>Applications ask about diagnoses, treatments, medications, tests, and follow-ups because this information affects risk. Leaving out something meaningful \u2014 even unintentionally \u2014 may surface during the claims review.<\/p>\n\n\n\n<p>Non-disclosure can look like:<\/p>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p>Not reporting a diagnosed condition (like hypertension, diabetes, heart issues, etc.)<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Leaving out a mental health diagnosis or recent treatment.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Forgetting to list current or long-term prescription medications.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Omitting recent tests or specialist visits that point to an ongoing health concern.<\/p>\n\n\n\n<p><\/p>\n<\/li>\n<\/ul>\n\n\n\n<p>Medical records are typically checked during a claim. If something significant wasn\u2019t disclosed, the insurer may delay, reduce, or deny the payout.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Dying during the contestability period<\/h3>\n\n\n\n<p>The first few years (typically 2) of a policy are known as the contestability period \u2014 a window where the insurer can double-check the accuracy of your application if you pass away. If everything checks out, the payout proceeds. If something major was left out, the claim may be reduced or denied.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Death by suicide in the first two years<\/h3>\n\n\n\n<p>Most Canadian life insurance policies include a two-year suicide clause. If the policyholder dies by suicide during this timeframe, the death benefit usually isn\u2019t paid, although some insurers may refund premiums. After this two-year window, death by suicide is generally covered, and the claim is processed like any other.<\/p>\n\n\n\n<p>Insurers may treat medically assisted death (MAID) differently. Some view it as separate from suicide and may pay the benefit even within the two years, while others may process it as a death from illness.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. Cause of death isn\u2019t covered<\/h3>\n\n\n\n<p>Policies list certain excluded causes of death, including:<\/p>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p><strong>Risky or extreme activities:<\/strong> If someone passes away while engaged in high-risk activities (think: skydiving, racing, technical diving, or piloting a private plane), the policy may not pay out unless those activities were disclosed and specifically included.<\/p>\n<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p><strong>Substance-related deaths<\/strong>: Fatalities linked to intoxication, such as drunk-driving accidents or overdoses involving illegal or non-prescribed drugs, may not be covered.<\/p>\n<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p><strong>Self-inflicted injuries beyond the suicide clause<\/strong>: Some policies won\u2019t cover deaths caused by deliberate self-harm or intentionally dangerous behaviour (like extreme stunts or life-threatening dares).<\/p>\n<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p><strong>Homicide involving the beneficiary<\/strong>: Under the \u201cSlayer Rule,\u201d insurers won\u2019t pay a benefit to someone who\u2019s suspected or convicted of being involved in the policyholder\u2019s death.<\/p>\n<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p><strong>War, terrorism, or high-risk regions<\/strong>: Some policies exclude deaths caused by war, armed conflict, or travel to countries considered unsafe. If the cause of death falls under an exclusion, the claim may be denied.<\/p>\n<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">6. Criminal activity<\/h3>\n\n\n\n<p>If someone dies while engaging in illegal activities, the insurer may deny the claim. Examples include:<\/p>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p>A fatal accident caused by impaired driving.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Death linked to illegal drug use or trafficking.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Being killed while committing a crime, such as robbery or assault.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Dying while fleeing police or during another unlawful action.<\/p>\n<\/li>\n<\/ul>\n\n\n\n<p>Each policy spells out which acts are excluded.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">7. Your policy lapsed<\/h3>\n\n\n\n<p>Life insurance only pays a death benefit if the policy is active. If premiums go unpaid long enough, the policy lapses and ends coverage. Insurers usually provide a grace period (e.g., 30 days), but once that window closes, the policy would be terminated, and your beneficiaries won\u2019t receive a payout.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">8. Your beneficiary passed away before you<\/h3>\n\n\n\n<p>Life insurance only pays the death benefit to a living, named beneficiary. If that person passes away and no contingent beneficiary is listed, the payout typically defaults to your estate. That can lead to delays, extra legal steps, probate fees, and reduced funds for your loved ones.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">9. Failing to update beneficiaries<\/h3>\n\n\n\n<p>Life changes \u2014 families shift, relationships evolve or fall apart\u2014 but <a href=\"https:\/\/www.rbcinsurance.com\/en-ca\/advice-learning\/life-insurance\/what-is-a-life-insurance-beneficiary\/\" data-dig-id=\"LP-LifeInsurance-32865-2fb4d064\" data-dig-category=\"LP-LifeInsurance\" data-dig-action=\"link click\" data-dig-label=\"beneficiary designations\" class=\"rbc-link-format\">beneficiary designations<\/a> stay frozen in time until you update the policy. Problems can arise when:<\/p>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p>A beneficiary has passed away.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>An ex-partner or outdated name is still listed.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>No contingent (secondary) beneficiary is named.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Names or percentages of payout to beneficiaries conflicts with other documents.<\/p>\n<\/li>\n<\/ul>\n\n\n\n<p>If information is outdated or unclear, the payout may be delayed or sent to your estate instead of the people you intended it to go to.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">10. Missing the deadline to file a claim<\/h3>\n\n\n\n<p>Claims must be filed within a set timeframe \u2014 typically 90 days to 12 months, depending on the policy. Late claims may still be reviewed, but approval depends on whether the insurer can verify the details of the death.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-prevent-your-claim-from-being-disqualified\">How to prevent your claim from being disqualified<\/h2>\n\n\n\n<p>Most issues that derail a payout are avoidable. Here are a few tips to keep your coverage valid:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Answer questions honestly<\/h3>\n\n\n\n<p>Insurers rely on the details you share about your health, medical history, and lifestyle to assess risk and set up your coverage. If something\u2019s missing or not quite accurate, it can come back into play later if a claim is reviewed \u2014 and that\u2019s a headache <em>no one<\/em> needs.<\/p>\n\n\n\n<p>If health concerns make qualifying for traditional life insurance difficult, <a href=\"https:\/\/www.rbcinsurance.com\/en-ca\/life-insurance\/guaranteed-life-insurance\/\">Guaranteed Acceptance Life Insurance<\/a> offers a simple workaround. There\u2019s no medical exam, no health questions, and Canadians aged 40 to 75 are automatically approved for up to $40,000 in lifetime coverage. Premiums stay the same, and the protection lasts for life.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Understand policy exclusions<\/h3>\n\n\n\n<p>Every life insurance policy sets out limits and situations it won\u2019t cover. Exclusions vary between insurers, so take the time to review your own policy to know exactly what\u2019s included (and what\u2019s not).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Keep paying premiums<\/h3>\n\n\n\n<p>Your coverage only stays active if premiums are paid in full, on time. If payments stop, the policy can lapse, leaving a gap in coverage. Staying current keeps your coverage intact and ensures your loved ones will receive a payout should you pass away.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Review and update your policy<\/h3>\n\n\n\n<p>A quick yearly check-in helps keep your policy aligned with your current circumstances. Make sure your contact information is up-to-date and your beneficiary choices still reflect your wishes. Adding a secondary beneficiary can also prevent hiccups if things change down the road.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-do-you-claim-a-death-benefit\">How do you claim a death benefit?<\/h2>\n\n\n\n<p>When a loved one passes, the last thing anyone needs is to navigate a maze of paperwork. Fortunately, life insurance claims are usually straightforward. Here\u2019s how it typically works:<\/p>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p><strong>Locate the policy, if possible:<\/strong> Knowing the policy number can speed things up, but the insurer can also help if you don\u2019t have it. If you\u2019re unsure which company issued the policy or the paperwork is missing, the <a href=\"https:\/\/olhi.ca\/\">OmbudService for Life and Health Insurance<\/a> (OLHI) offers a free national search to confirm whether a policy exists and who holds it.<\/p>\n<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p><strong>Call the insurer as soon as possible<\/strong>: Claims must be made within a certain timeframe, which varies by policy type.<\/p>\n<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p><strong>Submit the required documents<\/strong>: This usually includes a completed claim form, a death certificate, a birth certificate, and any other documents requested based on the type of coverage.<\/p>\n<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p><strong>Express service may be available<\/strong>: For RBC <a href=\"https:\/\/www.rbcinsurance.com\/en-ca\/life-insurance\/\">life insurance policies<\/a> worth up to $100,000, some claims may qualify for faster processing \u2013 provided the policy has been active for over 10 years and has a named beneficiary (policies listing the estate don\u2019t qualify).<\/p>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-protect-your-life-insurance-payout\">Protect your life insurance payout<\/h2>\n\n\n\n<p>A life insurance payout is meant to support your family during tough times \u2014 and in Canada, it almost always does. The few situations that can jeopardize a claim usually come down to avoidable issues like missing information, undisclosed medical details, lapsed payments, or outdated beneficiaries.<\/p>\n\n\n\n<p>The best way to protect your coverage is simple: be honest, transparent, and understand the parameters of your life insurance policy. If anything in the fine print leaves you scratching your head, speak with a qualified professional. A <a href=\"https:\/\/www.rbcinsurance.com\/request-a-call\/personal-insurance\/contact-us\/index.html\" data-dig-id=\"LP-LifeInsurance-32865-2fb4d064\" data-dig-category=\"LP-LifeInsurance\" data-dig-action=\"link click\" data-dig-label=\"licensed advisor\" class=\"rbc-link-format\">licensed advisor<\/a> can help you navigate the details, so your protection works exactly as you intended.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-faqs-about-what-disqualifies-a-life-insurance-payout\">FAQs about what disqualifies a life insurance payout<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Under what conditions does life insurance not pay out in Canada?<\/h3>\n\n\n\n<p>Life insurance in Canada <em>almost always<\/em> pays out. Claims are typically denied for misrepresentation, undisclosed medical conditions, premium lapses, policy exclusions, or beneficiary complications.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What percent of life insurance claims get denied?<\/h3>\n\n\n\n<p>Declined claims are rare in Canada. Industry estimates suggest that roughly 4 per cent of life insurance claims are denied. Most claims are paid without an issue.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What can I do if I\u2019m having problems processing a life insurance claim in Canada?<\/h3>\n\n\n\n<p>If a claim is delayed or you\u2019re not sure where to start, you have a few options:<\/p>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p><strong>Talk to the insurer directly <\/strong>to clarify what\u2019s missing and what\u2019s needed to move the claim forward.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p><strong>Get free, impartial advice <\/strong>from the <a href=\"https:\/\/olhi.ca\/\">OmbudService for Life and Health Insurance<\/a> (OLHI).<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p><strong>Consult a qualified advisor<\/strong> to help you understand how to navigate the process.<\/p>\n\n\n\n<div class=\"wp-block-rbc-section-inner-block  section-inner block-wpr bg-light-blue rounded-corners pos-rel pad-l pad-r mob-pad-r centered-block mob-pad-l pad-t mob-pad-t pad-b mob-pad-b\" style=\"border-radius:0x\">\n<h2 class=\"wp-block-heading has-text-align-center mar-t mar-b-hlf mob-mar-b-hlf mob-mar-t\" id=\"h-rbc-life-insurance\">RBC Life Insurance<\/h2>\n\n\n\n<p class=\"has-text-align-center mar-b-hlf mob-mar-b-hlf pad-r mob-pad-r pad-l mob-pad-l has-text-reg-font-size\">Protect Your Loved Ones With Dependable Life Insurance.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-a89b3969 wp-block-buttons-is-layout-flex\"><div>\n<div class=\"wp-block-button aligncenter btn is-style-primary primary\"><a class=\"wp-block-button__link has-text-lg-font-size has-custom-font-size wp-element-button\" href=\"https:\/\/www.rbcinsurance.com\/life-insurance\/life-insurance-quote\/index.html\" rel=\"noreferrer noopener\" data-dig-id=\"LP-283-476a44f4\" data-dig-category=\"LP\" data-dig-action=\"button click\" data-dig-label=\"Get a quote-https:\/\/www.rbcinsurance.com\/life-insurance\/life-insurance-quote\/index.html \">Get a quote<\/a><\/div>\n<\/div><\/div>\n\n\n\n<p class=\"has-text-align-center mar-t-hlf mob-mar-t-hlf pad-b mob-pad-b has-text-reg-font-size\"><a href=\"https:\/\/www.rbcinsurance.com\/en-ca\/life-insurance\/\" data-dig-id=\"LP-273-18de2c2e\" data-dig-category=\"LP\" data-dig-action=\"link click\" data-dig-label=\"Learn More\" class=\"rbc-link-format\">Learn More<\/a><\/p>\n<\/div>\n<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-rbc-rbc-default-collapsible\"><p><button class=\"collapse-toggle collapsed\" data-target=\"#collapse2de7ba0a\" data-toggle=\"collapse\" aria-expanded=\"false\" aria-controls=\"collapse2de7ba0a\" data-dig-id=\"LP-10384-2de7ba0a\" data-dig-category=\"LP\" data-dig-action=\"accordion closed\" action-closed=\"accordion closed\" action-opened=\"accordion open\" data-dig-label=\"Things Our Lawyers Want You to Know\"><div>Things Our Lawyers Want You to Know<\/div><\/button><\/p><div class=\"collapse-content collapse\" id=\"collapse2de7ba0a\">\n<div class=\"wp-block-rbc-collapsible-inner-block collapse-inner\">\n<p class=\"has-text-sm-font-size\">*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.<\/p>\n\n\n\n<p class=\"has-text-sm-font-size\">This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.<\/p>\n<\/div>\n<\/div><\/div>\n\n\n\n\n<\/div>\n<\/section>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>While the majority of insurance policies are paid out, here are 10 reasons why a life insurance payout is denied in Canada. <\/p>\n","protected":false},"author":207,"featured_media":32866,"comment_status":"open","ping_status":"open","sticky":false,"template":"templates\/new-rbci-design.php","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[54],"tags":[4],"article-type":[80],"ppma_author":[173],"class_list":["post-32865","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-life-insurance","tag-life-insurance","article-type-advice-learning"],"pp_force_visibility":null,"pp_subpost_visibility":null,"pp_inherited_force_visibility":null,"pp_inherited_subpost_visibility":null,"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What Disqualifies a Life Insurance Payout? 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