In February 1941, Banting died of wounds and exposure following the crash of a Lockheed L-14 Super Electra/Hudson in which he was a passenger, in Musgrave Harbour, Newfoundland. After departing from Gander, Newfoundland, both of the plane's engines failed. The navigator and co-pilot died instantly, but Banting and the pilot, Captain Joseph Mackey, survived the initial impact. According to Mackey, the sole survivor, Banting died from his injuries the next day. Banting was en route to England to conduct operational tests on the Franks flying suit developed by his colleague Wilbur Franks.
At the time of his death in 1941, Banting was one of Canada's best-known amateur painters. Dennis Reid, the former director of Collections and Research at the Art Gallery of Ontario, views Banting's works as very much "part of the Jackson story."
Since 1941, the American Diabetes Association confers Banting Medals for those with long-term contribution to diabetes research and treatment.