What is death benefit?
Definition
Educational information only. Last reviewed August 25, 2026.
How it works in Canada
The amount may be the face value alone or the face value plus paid-up additions and any accumulated account value, depending on policy design. Outstanding policy loans and unpaid premiums reduce the amount payable.
Example
A $500,000 policy with a $40,000 outstanding policy loan would pay approximately $460,000 to the beneficiary.
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Written and reviewed by CanadaGFI.ca Editorial Team
Licensed insurance and financial professionals contributing to CanadaGFI.ca
Published and last reviewed August 25, 2026. Read our editorial policy and disclosures.
This page is educational information about Canadian financial concepts. It is not personalized financial, tax, insurance or legal advice, and it does not consider your individual circumstances. Product availability, eligibility, pricing and tax treatment depend on the provider, your situation and current Canadian rules. Speak with a professional licensed in your province before acting.
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