Use the below definitions to become more familiar with our frequently used insurance terms.

Assignment of Benefits

The certificate owner assigns some or all of the certificate benefits to another party, such as a funeral establishment (conditioned upon performance of the pre-arranged goods and services by the funeral establishment). The assignment is located on the back of the enrollment form.


The person who will receive the certificate benefit as named by the certificate owner. With preneed insurance, the assignment of benefits will override the beneficiary designation when the funeral establishment conducts the contracted services, but may allow for return of excess funds.

Cash Advance

Monies the family pays to the funeral establishment to fund items that are outside of the funeral establishment Good and Services agreement, such as obituaries, funeral escorts and death certificates. The funeral establishment assists the family in obtaining these services, but is not paid for the assistance. These funds do not guarantee the price of the item. The family is responsible for any additional monies needed.

Cash Surrender

Certificate owner receives accumulated cash value if pre-arrangement funding is cancelled after 30 days of issue.

Contestable Clause

A clause within the certificate which allows the insurance company to conduct a medical review when death occurs during the first two years of certificate issue (Preferred and Standard Issue only).


Change in insurance products or change in payment years; for example, changing from a 3-year Time Pay plan to a 5-year Time Pay plan. You could also change from a Time Pay plan to a Single Pay plan. Contact customer service for assistance.


Decrease in pre-arranged funeral amount, resulting in a decrease in insurance face amount.

Down Payment Option

This option provides funding of a pre-arrangement with a down payment and regular payments.

Funeral Amount

The total amount of goods and services selected at the time of pre-arrangement.

Grace Period

A specified length of time (30 days) that an overdue renewal premium may be paid without penalty. If death occurs within the grace period, TruStage Life of Canada will deduct the last premium from the total death benefit.

Guaranteed Issue

Limited coverage is provided through a Guaranteed Issue plan if: (a) health questions are not answered; (b) one health question is answered “yes”; or (c) the enrollment form has no health questions. The limitation is extinguished immediately (Single Pay) or after two years (3-, 5-, 10-, 15- and 20-pay). The limitation is that the Death Benefit will be the return of premiums with 6% or 10% annual simple interest depending on the product.

Initial Face Amount

The initial value of the certificate funding the pre-arranged funeral.

Installment Plan

Plans designed for low amounts and high ages where other Time Pay plans are not available. These annuity plans do not have health questions and do not provide full coverage until all premiums are paid up. There’s no insurance on these plans.


A certificate with an overdue premium and no cash value. This certificate terminates after the grace period.

Reduced Paid-Up

RPU is a nonforfeiture option for Time Pay plans. This option is exercised automatically when a premium is 90 days past due. Funeral establishments have the right to void price guarantees if the certificate isn’t reinstated.


The process by which an insurer puts back in force a certificate that was in nonforfeiture for nonpayment of premium. Contact customer service for assistance.

Right to Cancel

A certificate owner receives a full refund of premium paid if the certificate is cancelled within the first 30 days of issue (right to cancel or free look period).

Standard and Preferred Issue

Standard and Preferred Issue Plans offer full coverage with a contestability period and are issued when applicants answer “no” to all health questions.

Suicide Clause

TruStage Life of Canada’s policies include a provision limiting liability to the return of all premiums paid if the insured dies as a result of suicide while sane or insane during the first two years from the date of issue.


Underwriting is the process of assessing and classifying the degree of risk that a proposed insured represents.


An increase in the pre-arranged funeral amount, resulting in an increase in insurance face amount.

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TruStage Life of Canada PO Box 79010 Concord PO Concord, ON L4K 4S8 | 1-888-977-3752 |