- Once the insurer has sufficient evidence of the claim, it must pay the person entitled within thirty days.
- If a beneficiary cannot be located, the insurer may apply to court, after thirty days, to pay the money into court.
- Payment under a court order discharges the insurer to the extent of the amount paid.
A person dies, a policy names a beneficiary, and nobody can find that beneficiary. Perhaps they moved, lost touch with the family, or live abroad. Families and insurers are then left asking who has to look, and what happens to the money.
This article explains what Ontario's Insurance Act says about payment and missing beneficiaries, and what else may apply. How hard an insurer must search is not set out here, so ask the insurer directly what steps it is taking.
The starting point: payment within thirty days
Once the insurer receives sufficient evidence of the claim, it must pay the insurance money to the person entitled within thirty days. The difficulty arises when the insurer cannot tell who that person is or cannot reach them.
If a beneficiary was properly designated, the money does not form part of the insured's estate. So the executor cannot simply collect it. The exception is a designation of the insured's 'heirs, next of kin or estate', which is treated as naming the personal representative and sends the money through the estate.
When the insurer cannot find the person
Where an insurer admits liability but the whereabouts of a person entitled is unknown, there are adverse claimants, or no one can give a valid discharge, the insurer may apply to court, after thirty days, to pay the money into court. Payment under a court order discharges the insurer to the extent of the amount paid.
Payment into court is a way of dealing with the money when the insurer cannot safely pay anyone directly, and the insurer is discharged to the extent of the amount paid. What happens next depends on the facts, such as whether the missing person is found or others claim the money, so it is worth confirming the next steps with a lawyer.
Other situations that look like a missing beneficiary
| Situation | What can happen |
|---|---|
| Beneficiary and insured died together, or order of death is uncertain | Unless the contract or declaration says otherwise, the money is paid as if the beneficiary died first. |
| Beneficiary is a child | A parent the child lives with may receive up to $35,000 where there is no guardian of property; larger sums are normally paid into court through the Accountant of the Superior Court of Justice. |
| Policy named the estate | The money goes through the estate. If an estate beneficiary is missing, the Trustee Act allows trust money to be paid into court by court order. |
| Competing claims | The insurer may apply to pay the money into court where there are adverse claimants. |
Searching for missing people and money
Family members can often help by sharing last known addresses, names of relatives, and records. Beyond that, a few practical points are worth knowing.
- Bank accounts are different from insurance. If certain bank products go unused for 10 years, the balance is treated as unclaimed and moved to the Bank of Canada, after written notices at 2, 5 and 9 years. Balances under $1,000 are held for 30 years and balances of $1,000 or more for 100 years. They can be searched on the Bank of Canada's Unclaimed Properties Office website.
- That federal system covers bank accounts, so do not assume it will list an insurance payout.
- Be wary of anyone who contacts you offering to find an inheritance for a fee. Ontario's official scam guidance warns about upfront fees, and being asked to pay to 'release' an inheritance is a warning sign of fraud.
What to do next
- Write to the insurer with the policy number, the death information and the beneficiary's last known details.
- Ask what evidence the insurer needs to treat the claim as complete.
- Ask whether the insurer intends to apply to pay the money into court.
- Check whether the designation names a person or the estate.
- Collect last known contact details and family connections for the missing person.
- Keep copies of every letter and reply.
If you are the missing beneficiary, or you think you are entitled, contact the insurer promptly and let it know how it can reach you. The insurer's thirty-day payment duty runs from when it receives sufficient evidence of the claim, and what the insurer will need from you depends on the facts, so it is worth confirming with a lawyer. If several people claim the money, or an estate is involved, a lawyer can explain how the court process works.
Frequently asked questions
How long does the insurer have to pay?
Once it has sufficient evidence of the claim, the insurer must pay the person entitled within thirty days. If the person cannot be found, it may apply to court after thirty days.
What happens to the money if no one can find the beneficiary?
The insurer may apply to pay the money into court, and payment under a court order discharges the insurer to the extent of the amount paid. What happens to the money after that depends on the facts, so it is worth confirming with a lawyer.
Can the estate trustee claim the money instead?
Not if a beneficiary was designated, because the money does not form part of the estate. If the designation was to the estate or heirs, it goes through the estate.
Is the Bank of Canada unclaimed property search useful for insurance?
It covers certain unused bank balances, not insurance proceeds. It may still be worth checking for the deceased's accounts.
Sources
- Insurance Act, R.S.O. 1990, c. I.8, s. 196(1) — Ontario e-Laws
- Ontario.ca – Guardianship of a child's money and property — ontario.ca
- Trustee Act, R.S.O. 1990, c. T.23, s. 36 — Ontario e-Laws
- FCAC – Unclaimed bank balances — canada.ca
- Ontario.ca – Identify a scam or fraud — ontario.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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