In Canada if you have a named beneficiary and not your estate then the proceeds bypass probate and are paid directly to the beneficiary.
If you name a beneficiary in the "protected class", spouse,parent, child, grandchild, then the policy is potentially protected from the owner's creditors during the lifetime of the person whose life is insured. In all provinces except Quebec, the relationship must be between the life insured and the beneficiary. In Quebec, it is between the owner and the beneficiary.
If you designate a beneficiary as irrevocable, then the policy also has potential creditor protection. In addition no changes to the policy can be made without the irrevocable beneficiary's consent.
If a corporation is owner and paying the premiums on a policy, the the company should be the beneficiary otherwise it will be considered to be a taxable benefit.
Ultimately, who should be named the beneficiary depends on what you want to accomplish.
If you have any further question or feel I could be of assistance please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community,
Your beneficiary should always be the person who will suffer the most financial loss upon your death. Whether it is a spouse or significant other, family member or business partner. Who needs your income or who would have to pay for your debts or who will be in charge of your final expenses? That is your beneficiary.
The beneficiary of your life insurance policy should be someone you trust to handle the money in a way that you would approve of. E.g. If you want your policy to pay for your funeral, choose a beneficiary who you can depend on to see that the money gets spent in that fashion.
Or, it should be the one(s) who would be most impacted by your death. E.g. Your spouse. It is best not to leave the money to minors unless you also have designated a financial guardian for them.
If your estate is large enough to pay estate taxes, you may want to consider forming an ILIT and leaving the money to that. Contacting an insurance and tax professional can help you make this important decision.
The beneficiary of your life insurance policy should be either the person(s) who would be most affected by your death.It is best for minors designated as a beneficiary have a financial guardian assigned/designated to them. It should also be an individual you trust to be in control of your final expenses. If your estate will require estate taxes contacting a tax professional is recommended...
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If you name a beneficiary in the "protected class", spouse,parent, child, grandchild, then the policy is potentially protected from the owner's creditors during the lifetime of the person whose life is insured. In all provinces except Quebec, the relationship must be between the life insured and the beneficiary. In Quebec, it is between the owner and the beneficiary.
If you designate a beneficiary as irrevocable, then the policy also has potential creditor protection. In addition no changes to the policy can be made without the irrevocable beneficiary's consent.
If a corporation is owner and paying the premiums on a policy, the the company should be the beneficiary otherwise it will be considered to be a taxable benefit.
Ultimately, who should be named the beneficiary depends on what you want to accomplish.
If you have any further question or feel I could be of assistance please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community,
Or, it should be the one(s) who would be most impacted by your death. E.g. Your spouse. It is best not to leave the money to minors unless you also have designated a financial guardian for them.
If your estate is large enough to pay estate taxes, you may want to consider forming an ILIT and leaving the money to that. Contacting an insurance and tax professional can help you make this important decision.