Life insurance – FAQ

What happens if my insurance company goes bankrupt?

If this involves insurance of persons, you can contact Assuris. Subject to certain maximum amounts, Assuris protects Canadian policyholders against loss due to the financial failure of a life and health insurance company. For more information regarding insurance coverage, visit the website This link will open in a new window.

For damage insurance companies, namely, automobile and home insurance, you can contact the Property and Casualty Insurance Compensation Corporation. Visit the website This link will open in a new window.

I received my life insurance contract, but I would like to cancel it. Is this possible?

Most insurers offer a 10-day review period after receipt of the contract within which you may return the contract and obtain a reimbursement of the premium paid. This right is provided for in the contract and not in law.

Is suicide always grounds for refusal to pay a claim?

An insurer may refuse payment if the suicide occurs within two years following the signing of the insurance policy. After this time period, the insurer is required to pay.
(Civil code of Québec, art. 2441)

Will divorce cancel the designation of my former spouse as the irrevocable beneficiary of my life insurance policy?

A divorce cancels any and all designations of a spouse as a beneficiary.
(Civil Code of Québec, art. 2459)

My husband died recently. How much time does the insurer have to pay the amount provided for in the insurance contract?

The insurer is bound to pay the sums insured and the other benefits provided in the policy, in accordance with the conditions of the policy, within thirty days after receipt of the required proof of loss. (Civil Code of Québec, art. 2436)