What is a revocable beneficiary and how is it different from irrevocable in Ontario?

A revocable beneficiary is a person you name to receive insurance money but whom you can change later without their consent. An insured may designate a beneficiary by the contract or by a declaration. An insured may also name themselves or their personal representative to receive the money. The difference matters because it affects whether the insured can change the choice later on their own.

An irrevocable designation is different. It must be made in the contract, or by a declaration filed with the insurer during the insured's lifetime, and it cannot be changed without the beneficiary's consent. If you try to make an irrevocable designation in a will, it takes effect only as a revocable one.

The wording matters. A designation of 'heirs' or 'estate' is deemed to designate your personal representative. If there is a dispute over who should be paid, or no one can give a valid discharge, an insurer that admits liability may apply to court to pay the money into court, and can do so after more than 30 days from when the money became payable. Because changing a beneficiary can have lasting effects, check your policy and ask a lawyer before you make a change.