Naming a beneficiary on life insurance

The beneficiary is the person (or people) who receives the policy's benefit. Getting this right matters as much as choosing the policy.

Naming a person vs your estate

When a living person is named, the benefit is generally paid directly to them, outside the estate. If the estate is named, or no beneficiary is alive, the money usually goes through the estate, which can mean delays and probate costs depending on the province. Ask a professional about your situation.

Common mistakes

• Not updating after a marriage, separation or death
• Naming a minor child directly, since a minor generally can't receive the money themselves
• Not naming a backup (contingent) beneficiary
• Not telling the beneficiary the policy exists

Revocable vs irrevocable

Most designations are revocable, meaning you can change them. An irrevocable beneficiary must consent to changes. Ask the insurer what applies.

This guide is general information, not insurance, financial, legal or tax advice.