What happens if one primary beneficiary dies before the person who named them in Ontario?

It depends on how the designation is worded and on the policy or plan terms, so the answer is not the same in every case. The share might go to the other primary beneficiaries, to a contingent beneficiary, or to the estate. Read the designation form and the policy or plan terms first, since they show whether any backup beneficiary was named.

For life insurance, an insured may designate a beneficiary in the contract or by a declaration. If the designation names 'heirs' or 'estate,' it is deemed to designate the insured's personal representative. An irrevocable designation cannot be changed without the beneficiary's consent, which can matter if circumstances change.

If the money ends up with the estate, the estate trustee distributes it according to the will. A separate rule saves certain gifts in a will when a child, grandchild, brother or sister dies first and leaves a spouse or issue, but whether anything similar applies to your designation depends on the document, so ask the insurer or plan administrator and a lawyer.