Designating or updating your beneficiaries: an important step
Whether you want to designate beneficiaries for the first time or confirm your existing designation is still up to date, it only takes a few minutes to make sure your choices reflect your wishes.
A beneficiary designation allows you to choose who will receive any applicable insurance benefits upon your death. Depending on the coverage included in your plan, this may include life insurance benefits or benefits under other types of coverage that provide for a monetary payment upon your death.
A clear and up-to-date designation can also make certain administrative matters easier for your loved ones and simplify the process of receiving benefits.
What is a beneficiary?
A beneficiary is a person or entity that you designate to receive the applicable insurance benefits payable upon your death.
If you designate multiple beneficiaries, you can specify the portion of your benefits that you wish to allocate to each person or entity.
Who can you designate as beneficiaries?
Depending on your situation and the rules in your province, you may designate various people or entities, including:
- Your spouse
- One or more children
- Any other person of your choice
- A trust, organization or other eligible entity, depending on the circumstances
If you are designating minor beneficiaries, it is important to designate a trustee, except in Quebec. In Quebec, if a minor child is named as beneficiary, the minor child’s parent or legal guardian will administer the amounts upon the death of the plan member until the minor child reaches the age of majority.
Primary beneficiaries and contingent beneficiaries: what’s the difference?
Primary beneficiaries are the individuals or entities you designate to receive the insurance benefits first.
You may also, if you wish, designate one or more contingent beneficiaries. These individuals or entities will receive the insurance benefits if the primary beneficiaries pass away before you.
Why is it important to designate your beneficiaries?
A beneficiary designation allows you to:
- Choose the people or entities who will receive any applicable group insurance benefits upon your death
- Ensure your wishes are clearly known
- Help simplify the process for your loved ones
- Enjoy greater peace of mind
On the other hand, if you do not make a beneficiary designation for your group insurance, the insurance benefits may be paid to your estate, in accordance with the applicable rules. This may complicate the settlement process and require additional administrative steps for your loved ones.
Revocable or irrevocable: What’s the difference?
When you designate your beneficiaries, you can choose to make the designation revocable or irrevocable.
Revocable designation: you can modify or replace a revocable designation at any time without obtaining the beneficiaries' consent.
Irrevocable designation: you must generally obtain the irrevocable beneficiaries’ written consent to modify or revoke their designation. Their consent may also be required for certain transactions.
Before naming an irrevocable beneficiary1, be sure you understand the implications and carefully evaluate how this decision may affect your personal situation.
When should you review your beneficiary designation?
Even if you have already designated your beneficiaries, we recommend that you review your designation whenever a major life event occurs that could affect your choices. A designation that was appropriate several years ago may no longer reflect your current situation.
A few examples of life events:
- A marriage or the start of a common-law relationship
- A separation, divorce or the end of a common-law relationship
- The birth or adoption of a child
- The death of a spouse or a dependent
- A significant change in your family or estate situation
How do you designate or update your beneficiaries?
- Sign in to My Client Space.
- On the homepage, click on Group Insurance.
- From the left-hand menu, click on Beneficiaries.
- Follow the steps.
You can also conveniently use the iA Mobile app to designate or update your beneficiaries. If you have not already done so, you can download it and sign in using your username and password for My Client Space. In the app, go to the Beneficiaries section and follow the steps.
Take action today!
Please take a few minutes to check whether you have designated beneficiaries and whether your designation still reflects your current situation and wishes.
Designating or updating your beneficiaries is a simple yet important step you can take to give yourself and your loved ones peace of mind.
1 In Quebec, specific rules may apply when designating a spouse as a beneficiary.