What is an irrevocable beneficiary on a life insurance policy in Ontario, and can it be changed?

An irrevocable beneficiary is a person the insured cannot remove or change without that person's consent while they are living. By default, a designation is revocable, meaning the insured may alter or revoke it at any time by a declaration.

To be irrevocable, the beneficiary must be named in the contract, or in a declaration that is not part of a will and is filed with the insurer at its head or principal office in Canada while the life insured is alive. An attempt to make a designation irrevocable in a will, or in an unfiled declaration, is treated as an ordinary designation that remains revocable.

The money is then not under the insured's control, is not subject to the insured's creditors and is not part of the insured's estate. The insured may deal with the policy if the beneficiary is not irrevocable or is 18 or older and consents; otherwise they may exercise rights set by Authority rule, and anyone acquiring an interest takes it subject to those rights unless a consent or court order says otherwise. If the beneficiary is a minor or lacks capacity, the insured may apply to court for an order allowing them to deal with the policy. A lawyer can confirm how this applies.