Available only to the spouse and dependent children of an employee or insurance policy holder, dependent life plans provide coverage in flat amounts only. Coverage for the spouse is generally higher than that available for children. Coverage for children generally becomes effective 14 days after birth and continues until the child is 21 years of age (25 years if in full-time attendance at school or university).
Your children and your spouse’s children (other than foster children) are eligible dependents if they are not married or in any other formal union recognized by law, and are under age 21. If your child is a full-time student attending an educational institution recognized under the Income Tax Act (Canada), they are considered an eligible dependent until the age of 25 (age of 26 for employees residing in Quebec) as long as the child is entirely dependent on you for financial support.
Employers may share in paying the premium, or opt to have employees pay the entire premium. The benefit is payable to the covered plan member upon the death of the dependent.
The most common amounts of dependent life coverage are $5,000 for a spouse and $2,500 per dependent child or $10,000 for a spouse and $5,000 per dependent child. However, coverage for higher amounts is often available.