CPP Death Benefit Application

The death of a loved one can be both emotionally and financially difficult. The surviving family can apply for the CPP death benefit. The amount is $2,500 and is payable by the government. The article will discuss who can claim the benefit, how to apply, and other important details. The Canada Pension Plan is important to many people because it helps them save money for retirement. It also provides a guaranteed income supplement after retirement.

What is CPP Death Benefit?

The CPP death benefit is a one-time lump-sum payment that is paid to the estate of a deceased CPP contributor. The amount is based on the person’s contributions to the CPP and the length of time they worked in Canada. This death benefit is not taxable in most cases.

The deceased person’s beneficiaries may claim the CPP death benefit within 60 days after their demise. They must be a spouse or common-law partner, the beneficiary of the deceased’s will, or the administrator named by the court to administer the estate. In some situations, children of the deceased may also be eligible to claim the CPP death benefit.

When a person dies, they are entitled to receive a one-time lump-sum death benefit of $2,500. In addition, the deceased may be eligible to receive a monthly Children’s Benefit if they have children.

The CPP death benefit is not to be confused with the survivor’s benefit, a monthly payment made to the survivors of a deceased CPP contributor. The survivor’s benefit is a more complex system that has different rules than the death benefit. While the CPP death benefit is a one-time payment, the survivor’s benefit is a monthly payment that continues for life. This means it is important to understand the differences between these two benefits to make the best decision for your family.

How to Apply for CPP Death Benefit

How to Apply for CPP Death Benefit?

Those who have lost a loved one may be eligible to receive survivor benefits under the Canada Pension Plan. These benefits include a death benefit, a survivor’s pension, and children’s benefits. Those who want to apply for these benefits should fill out the required forms as soon as possible. If they are unable to do this on their own, they can ask a representative to do it for them.

The surviving spouse or common-law partner must apply for the death benefit within 60 days of the date of the contributor’s death. If they do not do this, they will be unable to get the full amount of the benefit. If they are receiving other income from the estate, they must file a tax return to report this.

It is important to apply as quickly as possible after the death of a CPP contributor. The survivor’s pension payments will not start until the earliest of the month following the contributor’s death. It is also important to note that there are strict eligibility requirements for this benefit.

The deceased’s social insurance number must be noted on all documentation that is submitted to Service Canada. Additionally, valid photocopies of the required documents must be included. These copies can be mailed or dropped off at a Service Canada office. Due to COVID restrictions, people are advised not to visit Service Canada offices unless absolutely necessary.

How to Apply CPP Online

How to Apply CPP Online?

You can log in to your My Service Canada account to apply for the CPP death benefit. Then, carefully complete all the necessary information. Make sure to provide valid photocopies of all the mandatory documents. You can mail the documents to Service Canada or drop them off at a service center. In addition, remember to mention your and the deceased person’s Social Insurance Number on all the documents. This will help speed up the process. Then, you can expect to receive your payment within six to twelve weeks.

January-December 2024 CPP Payment Amounts (Monthly and Maximum)

Type of pension or benefitAverage amount for new beneficiaries (October 2023)Maximum payment ([year])
Retirement pension (at age 65)$758.32$1,364.60
Post-retirement benefit (at age 65)$11.41$44.46
Disability benefit$1,127.30$1,606.78
Post-retirement disability benefit$558.74$583.32
Survivor’s pension – younger than 65$498.66$739.31
Survivor’s pension – 65 and older$315.77$818.76
Children of disabled CPP contributors$281.72$294.12
Children of deceased CPP contributors$281.72$294.12
Death benefit (one-time payment)$2,499.73$2,500.00
Combined benefits
Combined survivor’s and retirement pension (at age 65)$944.53$1,375.41
Combined survivor’s pension and disability benefit1,230.33$1,613

Source: https://www.canada.ca/en/services/benefits/publicpensions/cpp/payment-amounts.html