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End-of-life expenses: a high-potential market
By Florence Dujoux • Published January 5, 2026 • 4 Min Read
One in five Canadians was aged 65 or over in 2023. Population aging is inevitably accompanied by an increase in the mortality rate in Canada. In the event of a death, it is the family that is responsible for arranging the deceased’s funeral. Too often, financial difficulties are added to the emotional distress of loved ones.
Yet more than half (53%) of Canadians do not want to be a burden on their family after their passing, according to a survey conducted by RBC Insurance in July 2024. What’s more, nearly all respondents (82%) believe it is important that their loved ones receive money quickly, to avoid having to pay funeral costs or other end-of-life expenses out of pocket.
Even though many say they want to financially protect their family after their death, most also admit that they are not actively planning to achieve this objective.
Underinsured retirees
The RBC Insurance survey shows that only 15% of Canadians have planned how their money and assets will be transferred to their loved ones after death. While this proportion increases with age, it reaches only 24% among retirees. In addition, fewer than four in ten retirees (38%) have set aside money or taken out life insurance to cover their funeral expenses.
This segment of the population is less well informed than others about the different types of insurance policies, thereby overlooking solutions that could help them achieve their objectives, the RBC Insurance survey highlights. Moreover, with increasing life expectancy—which averaged nearly 83 years in 2023—seniors do not always have sufficient life insurance coverage.
“Planning one’s funeral remains a taboo subject: not everyone wants to talk about it or deal with it,” notes Mathieu Houle, Executive Director of the Fédération des coopératives funéraires du Québec (FCFQ), the third-largest family support network in Canada.
Funerals are becoming increasingly expensive
Dignity Memorial, the largest provider of funeral, cremation and cemetery services in North America, indicates that in 2025 the average cost of a funeral in Canada amounts to $9,150. However, this average masks significant disparities. Cremation is generally less expensive than a traditional burial. Three-quarters of those who die are cremated in Canada. For equivalent services, costs are higher in major urban centres such as Toronto, Vancouver or Montreal. In all cases, taxes must be added to determine the total amount.
Limited death benefits
The benefit amount is set at $2,500 and is taxable. To be eligible, the deceased must have contributed for 10 years to the Quebec Pension Plan (QPP) and/or the Canada Pension Plan (CPP), or meet other eligibility conditions.
In Quebec, this benefit has remained unchanged since 1998. Elsewhere in Canada, new provisions came into effect in January 2025. The CPP can now pay an additional amount of $2,500 to the estate executor or to the person who paid the funeral expenses. Two conditions must be met: the deceased must not have been entitled to CPP or QPP benefits based on their contributions (that is, they died before receiving a retirement or disability pension), and there must be no surviving spouse or common-law partner eligible for a survivor’s pension.
End-of-life expenses that add up
“Setting aside money to cover funeral expenses is an important way to financially protect one’s family, but it is not the only cost to consider,” notes Farzana Damji, Senior Director, Product Development, at RBC Insurance.
Loved ones or the estate executor may face additional expenses, such as mortgage or rent payments, credit card balances and medical expenses, or year-end taxes. These unforeseen expenses may require prompt payment. Yet most Canadian estates take between 6 and 18 months to be settled, and some can take years, according to estate-planning software company EstateExec.
*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.
This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.
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