In the event of your death from any cause, $16,500 will be paid in a lump sum to the beneficiary you have named. You may change your beneficiary (within the limits set by the law) at any time by completing a form which is available to you on request from the Benefits Office. The premium paid in respect of the Life Insurance benefit is a taxable benefit. At the end of each year, you will receive a Canada Revenue Agency Form T4A showing the total premium paid during the year for Life Insurance coverage under the “Other Income” section. This must be included in your income for the year and you must file the T4A with your annual income tax return. No taxable benefit is reported for the period during which you paid the full pensioner premium or were on assisted coverage.
The dependent life policy terminates upon your Retirement.
An advance payment of 50% of your Life Insurance benefit can be paid out if you suffer from a terminal illness and when your life expectancy is under 12 months. Interest is charged on the amount advanced and the total sum is deducted from the final payment.