What is the difference between a primary and a contingent beneficiary in Ontario?

A primary beneficiary is the person named to be paid first, and a contingent beneficiary is the backup named to take that share if the primary beneficiary has died. Naming a backup matters because the first person you name may not outlive you. The insured can name themselves, their estate or a beneficiary, either in the contract or by a separate declaration.

If the contract or declaration does not say who takes a deceased beneficiary's share, it goes to the surviving beneficiary, and several survivors share it equally. If none survive, it goes to the insured or the insured's estate. A contingent beneficiary named in the policy is the policy's own answer to that question.

Unless the designation is irrevocable, the insured can alter or revoke it at any time by a declaration. An irrevocable designation is different, because while that beneficiary is living the insured cannot change it without the beneficiary's consent. An insurer may also restrict or exclude in the contract the insured's right to name beneficiaries. Because the details depend on your policy wording, it is worth confirming with a lawyer before you fill in or change a form.